Egypt withdraws from UN grain treaty

Published 2023년 3월 10일

Tridge summary

Egypt has announced its intention to withdraw from the UN grain treaty, also known as the multinational grain trade convention (GTC), effective from June 30, 2023. This treaty is designed to ensure market transparency and foster trade cooperation among its members. Egypt's decision, which has surprised and disappointed other member nations, especially the International Grains Council, comes amidst challenges to global food security caused by the Ukraine conflict. These challenges have disrupted wheat purchases in Egypt, leading the country to seek diversification of its supply sources and to rely on Russian imports. The war's economic impact has also worsened Egypt's foreign currency shortage, slowing down imports and prompting an emergency financial support package from the IMF.

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Original content

Egypt, one of the world's biggest wheat importers, has given notice that it will withdraw at the end of June from a decades-old UN grain treaty, causing consternation among some other signatories to the convention. Egypt's withdrawal from the multinational grain trade convention (GTC), which promotes market transparency to promote trade cooperation, follows a period of turmoil in grain markets linked to the war in Ukraine and concerns over global food security. Egypt signed the GTC, the only international treaty covering the grain trade, at its inception in 1995, and has been a member of the governing council since 1949. In February, it filed a withdrawal request with effect from June 30 2023. "This came without prior information. Several delegations within the IGC are surprised and saddened by the decision," Arnaud Petit, executive director of the International Grains Council, which administers the treaty, told Reuters. Two sources familiar with the matter, who asked to remain ...

Source: Agrolink