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Virtual Water Trade in Egyptian Agricultural Sector in the Light of Scarcity of Water Resources

DOI: 10.4236/jss.2023.115013, PP. 162-189

Keywords: Virtual Water, Supply Water, Demand, Egypt, Trade Water

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Abstract:

Agricultural foreign trade has taken many recent trends in light of many changes and developments affecting the global economic environment. Countries have resorted to adjusting their trade policies and reconsidering the commodity structure of their exports to suit their resources, especially water resources, in order to maintain the efficiency of the use of these resources and at the same time increase the export return. The water issue in Egypt faces major challenges on the demand side of water in light of the relative stability on the supply side. The state is working to increase the supply side through the reuse of agricultural wastewater, seawater desalination, and wastewater treatment. On the demand side, it is working to develop systems Irrigation, reducing wastage in the use sectors, moving towards foreign trade by importing basic crops, and limiting the export of water-depleting crops to find a balance between the water balance and the agricultural trade balance, in which the deficit amounted to about LE 182.5 billion, representing about 23.5% of the deficit in the total trade balance of about LE 777.42 billion in 2019. The problem of the research is inefficiency of using the water resource in agricultural exports, as most components of the Egyptian agricultural exports structure are water-intensive fruit and vegetable crops, while the contribution of agricultural commodities that is less in the use of the water resource and the best in the export return is somewhat limited, which indicates the importance of working on modifying the structure of Egyptian agricultural exports and re-planning them in line with the variables related to the scarcity of water resources in Egypt. The main objective of the research is to propose different alternatives for the optimal planning of Egyptian agricultural exports, which are characterized by high export returns and low needs of water resources. The research depends on the linear programming method as a quantitative method to measure the phenomena and variables related to the research problem. Related to the research results, the following can be recommended: 1) Supporting the productive capacities of producers to export crops that use less water; 2) Reducing the expansion of exports that use the most water resource by limiting

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