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Economy and obesity: when free trade agreements make you fat

Elimination of tariffs on US imports of high fructose corn syrup is linked to increased calorie intake and widespread obesity in Canada, according to research by Bocconi's David Stuckler

Economy and obesity: when free trade agreements make you fat

Canadians could blame their growing waistlines on the North American Free Trade Agreement (Naphtha), according to research just published in the Canadian Medical Association Journal. “In our study, we found evidence of a strong link between the elimination of import duties on high fructose corn syrup (an industrial sweetener widely used in various food and beverage products, including sodas, ice cream and cookies) and the obesity epidemic that has gripped the country,” says David Stuckler of the University Bocconi.

NAFTA's tariff structure, which separates foods and beverages containing brown sugar and beets from those containing corn syrup, has undergone some changes along the way. Between 1994 and 1998 tariffs on foods and beverages with corn syrup have been eliminated, while those on products with cane and beet sugars remained.

Between 1994 and 2000 the Canadian imports of corn syrup from the United States have more than doubled to 16.000 tons, replacing other less caloric but more expensive sweeteners. The study, covering 1985-2000, found that lower tariffs for corn syrup are associated with an increase of about 41,6 kcal for sweeteners consumed per person/day in Canada. This increase correlates with a dramatic increase in obesity rates, which rose from 5,6% in 1985 to 14,8% in 1998, as well as an increase in type 2 diabetes.

“Even a modest increase of just over 2 percent in an adult's daily caloric needs can have a large effect on an entire population,” Stuckler explains. “Small calorie surpluses accumulate over time. For example, an average increase of 100-150 kcal per person per day is enough to explain the entire increase in obesity in the population in recent decades”.

The study provides evidence of the impact a free trade agreement, such as NAFTA, can have on diet and health. "There
our analysis of NAFTA suggests that the new trade treaties do not only have financial consequencesbut could also harm people's health, as lower tariffs increase consumption of dangerous and harmful food products such as corn syrup,” say the authors.

The authors note that their findings are consistent with other studies, which show a change in dietary habits in countries that sign trade agreements with the United States. These trade deals may have important implications for health policy as NAFTA is seen as a model for future free trade agreements.

In 'European UnionFor example, tariffs on US corn syrup imports are significant, but could be eliminated if the EU follows in Canada's footsteps and signs the Transatlantic Trade and Investment Partnership, TTIP, with the US. Corn syrup production in Europe is currently subject to a stringent production quota, which is expected to be abolished in October 2017.

The study in question is Impact of the North American Free Trade Agreement on high-fructose corn syrup supply in Canada: a natural experiment using synthetic control methods, by Pepita Barlow (University of Oxford), David Stuckler (Bocconi University), Martin McKee ( London School of Hygiene & Tropical Medicine) and Sanjay Basu (Stanford Prevention Research Center).

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