Water as a Strategic Asset: Why Global Governance Lags Behind Climate and Trade Rules

A new commentary argues that water is a critical security and economic asset, yet global governance remains fragmented. The authors point to recent disruptions in the Panama Canal and Gulf desalination plants as evidence that water risks are rising faster than institutional responses. Nearly 20 percent of global water use is embedded in traded goods, but trade rules still focus on carbon intensity. The authors suggest that water intensity should be treated similarly. They also highlight that droughts cost the global economy an estimated 307 billion dollars per year, while floods caused 651 billion dollars in damages between 2000 and 2019. These numbers underscore the gap between water's strategic importance and the lack of coordinated international frameworks.