NDTO News Article

Flow of Trade, Meet Flow of Water

We usually think of exports in terms of money, goods, and global markets—but what if we told you that water is one of the most valuable things being traded around the world, often without notice?

Every product we export—whether it’s beef, wheat, or cotton—requires water to produce. That water, though invisible in the final product, is effectively “exported” too. In many countries, especially those already facing water scarcity, this kind of trade can quietly deepen a crisis.

 

What Is Virtual Water and Why It Matters

Virtual water is the volume of water used to produce goods.1 When a water‑scarce country imports, it saves the water that would have been used locally. Conversely, when a water‑stressed nation exports, it’s losing precious water resources.

For instance, regions like the Middle East and North Africa import enormous amounts of wheat. One ton of wheat can demand around 1,000 m³ of water — and importing helps these countries preserve their own scarce water.2 Meanwhile, exporting countries—especially those already water-stressed—are draining their reserves to feed someone else’s table. In 2018, India, the USA, and Pakistan were top exporters of “scarce virtual water,” primarily through seed cotton, rice, and oilseeds.3

In fact, about 25% of all water consumed globally for production is traded in virtual form, and the U.S. alone exports around one-third of its total water withdrawal through exports.4

A rising body of evidence suggests that water scarcity affects over half the global population each year, with freshwater demand expected to outpace supply by 2030.5 Trade patterns often exacerbate this by moving water-rich products out of already stressed areas, while international governance around water remains underdeveloped compared to commerce regulations.

 

North Dakota’s Impact

So, where does North Dakota fit into all this? Granted, our state isn’t as globally renowned for water stress—but water is still central to our agricultural identity.

While North Dakota may not export water-­­intensive crops at the scale of India’s rice or other large nations, we still rely heavily on water for our booming agriculture. If climate patterns shift further or demand surges internationally, the risk of groundwater stress may grow—especially as monocultures like corn and soy swallow up more land and water.

 

Virtual water makes it clear that trade isn’t just about goods—it’s about resources, especially water. For countries already facing scarcity, exporting water-intensive products can quietly worsen the problem. Even in places like North Dakota, where water issues may not seem urgent now, shifting climates and growing demand mean it’s time to start thinking more carefully about how water is used—and exported. As water becomes a more limited resource globally, managing it wisely is no longer optional—it’s essential.

 

1What is Virtual Water? – Water Footprint Calculator

2The quiet power of virtual water trade in shaping global resource dynamics  – IWMI

3Global water stress mitigation achieved through international crop trade – PMC

4The Hidden Global Trade in Water | YaleGlobal Online

5‘New climate reality’ stretches global freshwater supply