The diversification of global agribusiness trade from 2000-2019

Abstract

Agricultural trade is closely interconnected with a range of food security and development related issues in the case of developing countries. In this regard, diversification of both trade partners and products traded can play an important role in terms of strengthening food security concerning imports, but also as a means to create a more resilient basket of exports. This article analyses the diversification of global agricultural trade from 2000-2019, considering the main players and positions of countries within the World Trade Organization (WTO) negotiations. We scrutinize the trade diversification of the imports and exports of individual countries and groups of countries in terms of both products and markets by assessing the degree of sectorial and geographical concentration of their trade flows in the period from 2000 to 2019. We initially analyze the relation between the exported and imported value of agribusiness, and hereafter estimate indexes of diversification of each country’s agricultural trade partners and concerning the specific products exported and imported. Our conclusions highlight how many developing countries are marked by a low degree of both sectorial and geographical diversification of their agricultural trade, making them vulnerable to fluctuations within global agricultural markets. Key words: Agricultural products, balance of trade, World Trade Organization (WTO), trade concentration. JEL: Q17, F10, C43.