Agriculture and Trade

Agriculture is an industry which in the absence of government farm programs; the industry comprises many firms selling virtually standardized products. Agriculture is an Industry which can be understood by applying the demand and supply tools of competitive markets. In recent years, agriculture protection and its impact on developing countries have attracted growing attention. The successful integration into the world economy are home to more than 2 billion people has meant that developing countries have increased their share in global trade in Agriculture sector. Most of those gains have come from increased exports of manufactured products. Integration in agriculture is lagging behind. Most industrial and many developing countries still protect agriculture at high levels. Agriculture protection continues to be among the most important issues in global trade negotiations, with high protection in industrial countries being the main cause of the breakdown of the Cancun Ministerial Meetings in 2003. Reshaping the world’s trade system and reducing barriers to trade could accelerate medium term growth and reduce global poverty. For most developing countries, including those are net food importers, agriculture is the key sector for poverty reduction.