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

2. Birth of a Concept Prof. John Anthony (Tony) Allan King’s College
School of African and Asian Studies
Stockholm World Water Prize 2008
“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!

3. National water footprint
Source: waterfootprint.org

4. Blue, green and gray water

5. Global virtual water trade
 Dalin et al., PNAS 2012

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

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

8. Examples of water footprints
Source: virtualwater.eu

9. Water footprints and EU usage

10. 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

11. 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

12. 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

13. WTO Members

14. 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

15. 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”

16. 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