Savings and Losses of Scarce Virtual Water in the International Trade of Wheat, Maize, and Rice

Abstract

The international cereal trade can mitigate global water stress by saving virtual scarce water (VSW). Based on bilateral trade data, this study assessed VSW savings and losses in the international trade of three major cereals (i.e., wheat, maize, and rice) from 2008 to 2017 by incorporating the water stress index (WSI) into a virtual water assessment. We found that the trade in wheat and maize saved a significant amount of VSW, while the rice trade led to increasingly severe losses of VSW. This study identified the top trades of VSW savings and losses for each cereal. Wheat and maize were primarily exported from the countries that are relatively abundant in water resources (e.g., United States, Brazil, Argentina, Russia) to water-scarce countries (e.g., Mexico and Egypt), whereas rice was exported mainly from India and Pakistan, two of the most water-stressed countries. We suggest that policy makers consider VSW savings and losses when making cereal trading decisions to alleviate global water stress.