2016 Food policy

Report of the Special Rapporteur on the right to food, par. 31 (2016)

Text of the recommendation

foreign direct investment (FDI)**

31. FDI is playing a significant role in the “nutrition transition”. The food processing industry is now the largest recipient of FDI, particularly in support of energy-dense, nutrient-poor foods. FDI allows companies to become transnational by purchasing or investing in “foreign affiliates” located in other countries, which then produce food for the domestic markets. This allows the foreign-based company to bypass import tariffs and lowers transportation and production costs. By flooding markets with cheap refined grains, corn sweeteners and vegetable oil, FDI has become a driving force behind rising obesity rates in developing countries.


Special Rapporteur on the right to food, Interim Report on the right to food, A/71/282, (2016). Par. 31. Available at: https://undocs.org/A/71/282