Paper short abstract:

The paper shows the existence of a new form of unequal exchange between Latin America and the Caribbean and the rest of the world, coined as 'caloric unequal exchange'. LAC countries' terms of trade in terms of the cost of exported and imported calories of food products are deteriorating over time.

Paper long abstract:

The existence of unequal exchange between rich and poor countries has been demonstrated in the literature for some time, explained by differences in labour costs reflected in the prices of traded goods. In recent years, research has also demonstrated that the lack of inclusion of environmental impacts in the prices of traded goods reflects an ecologically unequal exchange. This paper contributes to the discussion with the concept of caloric unequal exchange that reflects the deterioration of terms of trade for food in terms of calories. Using the latest FAO data available, exports and imports from and to Latin America and the Caribbean are analysed for the period 1961 through 2011 in volume, value and calories and for different groups of products. The conclusion is reached that although calories exported by the region to the rest of the world are more expensive that those imported, the ratio is deteriorating over time. This trend is found to be different depending on the partner involved. In all cases, the region is helping the rest of the world in improving their diets at a lower cost. This result confirms the loss of natural funds such as soil and nutrients, which can be seen as a de-capitalisation of exporting countries. A side result is that globalisation is homogenising diets over time, concentrating most of food consumption in a reduced number of products, and therefore increasing interdependency among countries and affecting food security.