Trade and Virtual Water HH8 – Law and Hydro-Hegemony 25 October 2015 Renee Martin-Nagle PhD Researcher, Transboundary Aquifer Law University of Strathclyde

Birth of a Concept Prof. John Anthony (Tony) Allan King’s College School of African and Asian Studies Stockholm World Water Prize 2008 2003 -- “the water needed to produce agricultural commodities” Concept now expanded to include all products NOT bulk water Prof. Arjen Y. Hoekstra introduced water footprint in 2002 One person CAN make a difference!

National water footprint Source: waterfootprint.org

Blue, green and gray water

Global virtual water trade  Dalin et al., PNAS 2012

Virtual water trade in all products: 1996-2005 Source: Waterfootprint.org

Water trade of certain nations © 2014 Hans Schreier, Garwood Pang, UBC

Examples of water footprints Source: virtualwater.eu

Water footprints and EU usage

Advantages of virtual water trade Lets the market decide where products should be produced and consumed Can support political stability through food Allows for transfer of water from water-rich areas to water-poor areas

Downside of virtual water trade Can lead to overconsumption in favor of profits Can produce land grabbing for water Can lead to water scarcity Allows personal water footprint to remain invisible Can change local climate

World Trade Organization (WTO) Founded in 1995 (successor to GATT) 161 members; HQ in Geneva Stated principles: non-discrimination, transparency, competition Applies to products, not processes or policies Activities: Reduces/eliminates trade barriers Agrees trade rules for goods/services/IP Monitors trade policies Settles disputes

WTO Members

WTO Multilateral Agreements Agriculture Sanitary/Phytosanitary Measures Textiles/Clothing Technical Barriers to Trade Trade-Related Investment Measures Antidumping Customs valuation Preshipment Inspection Rules of Origin Import licensing Subsidies and Countervailing Measures Safeguards

Exceptions -- Art. XX of GATT “(b) necessary to protect human, animal or plant life or health” or “(g) relating to the conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption” AND “not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination”

Practical considerations in VW Virtual water trade is covered under WTO through products Trade barriers are rarely permitted Water is not specifically addressed Major VW players are states, corporations and consumers  Water trade is not restricted under any global legal regime