Free trade myths and realities # 2

Myth: Food security results only from domestic food production of food

Reality: Markets and freedom to trade are the best way to improve food security and to improve consumer choice. It is cheaper and better to grow bananas in Belize than in London, and trade means that resources are used more efficiently in each place (so that countries, such as Hong Kong, who cannot grow food use their labour, capital, and knowledge to produce other goods.)

Consumers benefit from lower prices associated with that efficiency. The environment also benefits because environmental resources are used less intensively. Without trade distortions, global trade in food would increase food security and decrease the cost of food.