International trade and agriculture complement each other toward the collective development of world economy. International trade in agricultural products accounts for less than 10% of world merchandise exports. International trade in agricultural products is incomprehensible and contorted in nature. In 1994 Uruguay round, several new agreements and disciplines have been taken into consideration for regulating trade in agricultural products.
Factors involved in international trade in agriculture
Some of the major factors that influence international trade in agriculture are economic growth rates among countries, changes in trade policies, exchange rate variations and emergence of new competition.
Facts on international trade and agriculture
The GATT (General Agreements on Tariffs and Trade ) agreement was technically applied to trade in agriculture. During Uruguay Round negotiations in 1994, a multilateral treaty, called the Agreement on Agriculture was brought on to establish a clean trading system.
The other objective of that agreement was to reduce domestic and export subsidies on agricultural products.
Statistical report: International trade and agriculture
Agriculture accounts for about 2% to the GDP (Gross Domestic Product) of the 30 OECD (Organization for Economic Co-operation and Development ) countries.
In 2001, bilateral development assistance from OECD countries to farmers in developing countries amounted to 3 billion USD.
The OECD countries account for over 70% of world agricultural exports and 75% of world agricultural imports. The contribution of least developed countries in world agricultural imports and exports account for only one percent.
Financial backup for farmers in OECD countries costs a family of four approximately 1,000 USD per year. In most OECD countries, farm households have a stable income.
A market study report reveals that most of the agricultural gains come from reform of market access measures. The report also discloses that almost all countries in the world attained the benefit from international trade protection and domestic support.
Last Updated on : 18th July 2013