Measures to Protect Biodiversity: Agricultural Trade
The way people use the Earth’s land has a major impact on food security, biodiversity, and the climate. High demand for soybeans as animal feed or for palm oil as an inexpensive, versatile vegetable oil, for example, leads to land being intensively farmed or newly developed. This is often accompanied by a loss of biodiversity and an acceleration of climate change. However, the mechanisms of international agricultural trade can also be leveraged to positively address these conflicting goals.
Questions and answers
Question
Why is there international agricultural trade?
Answer
Very different agricultural products can be grown locally, depending on the climatic conditions, the type of soil and whether there is enough water. Some regions therefore have more grain, oilseeds, pasture or fruit plantations than others. International trade ensures a balance between surplus and shortage. In this way, people around the world can be supplied with sufficient nutrients, for example by importing cereals or vegetable oils. Trade also helps to reduce strong seasonal fluctuations within individual countries and regions as well as temporary food shortages caused by extreme weather conditions such as droughts or heavy rainfall. Trade also helps to diversify our menus: without trade, for example, there would be no coffee or tea in Germany, no fruit such as bananas or pineapples, no rice and hardly any spices.
Palm oil, coffee, soya - a look at the interdependencies between trade, biodiversity and climate
In a globalised world, international agricultural trade is also influenced by the worldwide interplay of supply and demand, with serious consequences for the climate and biodiversity. The increasing demand for agricultural goods is leading to the expansion of agricultural land at the expense of natural habitats. This often affects regions with particularly high biodiversity, such as tropical forests. In addition, existing agricultural land is increasingly being utilised more intensively in order to increase yields, for example through the increased use of pesticides. Both can threaten local biodiversity and cause irreparable damage. The complex interrelationships between biodiversity, climate and food security can be clearly illustrated using individual products.
Palm Oil ▸
No oil is as productive to grow as palm oil. The area under cultivation is growing. However, what helps food security in the short term could harm it in the long term.
Arabica Coffee ▸
The Ethiopian highlands are known for their aromatic coffee. However, little is known about the value of wild coffee for the entire coffee industry. This value is under threat.
Soya ▸
The history of soya cultivation was a success story. Until it was discovered that soya doesn't just taste good to humans.
Trade relations and laws - How the EU influences agricultural trade
The mechanisms of international agricultural trade can be utilised to have a positive impact on food security, climate protection and biodiversity conservation. In the EU, for example, there are already numerous requirements for biodiversity and climate protection in food production (see chapter 3). However, regulations within the EU can lead to displacement effects in other regions of the world. One approach to countering this problem would be to regulate external effects such as climate and environmental impacts of production wherever they arise. A comprehensive EU or amended German agricultural law could regulate the many requirements in a standardised and legally secure manner.
Trade policy instruments such as international trade agreements could help if they were more strongly focussed on serving biodiversity and climate protection. In the EU, there is already a directive that obliges companies to avoid negative impacts on human rights, the climate and the environment along the supply chain: the EU Supply Chain Act.
Questions and answers
Question
What is the EU Supply Chain Act?
Answer
The EU Supply Chain Act (EU Directive 2024/1760) was adopted in 2024. It sets out binding due diligence obligations for companies so that they can better manage the impact of their business activities on people and the environment and avoid negative consequences. European companies, but also companies that want to trade in the EU, should create fair economic conditions. Along the supply chain, companies should check whether there are risks to human rights (e.g. child labour) and the environment (e.g. pollution, loss of biodiversity). The Supply Chain Act is intended to prevent these risks. Companies must also set up complaints procedures and report regularly on their measures. At the end of 2025, the European Parliament decided to postpone implementation by one year and to simplify the sustainability and due diligence obligations. For example, only direct business partners are to be included in the supply chains. The burden on smaller companies was also eased.
With the "Regulation on Deforestation-free Products", the EU has also passed a law for deforestation-free supply chains. It applies to products such as beef, soya, palm oil, wood, cocoa, coffee and natural rubber as well as products made from these. These products may only be traded in the EU if no forests have been cut down for them. However, the actual application of the regulation was postponed once again at the end of 2025. The due diligence obligations and reporting processes that companies are required to comply with have also been simplified. However, such laws should be further developed to serve biodiversity conservation even more, for example by extending the law for deforestation-free supply chains to wetlands and savannahs.
Deepening the topic
- Discussion paper "How can international agricultural trade contribute to biodiversity conservation, climate protection and food security? In favour of coherent governance of consumption, production and trade" (2025, German only))
- Digital dossier "Agricultural trade and consumption" (German only)
- "Turning many screws at the same time" - Interview with Katrin Böhning-Gaese and Harald Grethe (German only)
Published: October 2020, Updated: April 2026