Globalization is characterized by the production
and movement of goods and services around the
world, and water is a key ingredient either
directly or indirectly in almost every good
produced. Consequently, the movement of goods
effectively results in the movement of water
around the world. Existing patterns of trade,
however, are not necessarily water-efficient.
Many factors are at play when global trade
decisions are made, and water is rarely one of
them. The concept of “virtual water” – which
measures the amount of water embedded in the
production of food and other products – has been
introduced as a way to evaluate the role of trade
in distributing water resources. By allowing those
living in water-scarce regions to meet some of
their water needs through the import of waterintensive
goods, some have argued that
international trade can provide a mechanism to
improve global water-use efficiency (Allan 1993).
Others, however, have posited that it simply
externalizes the environmental burden of
producing a particular product. In any case, the
facts suggest that countries’ relative water
endowments are not dictating global trade
patterns. Indeed, three of the world’s top ten
food exporters are considered water scarce, and
three of the top ten food importers are water rich