What is the role of international trade in agriculture?
International trade in agriculture is governed by a number of forces that affect the location and quantity of food produced nations. Tarifs, trading in blocks and regulations on agricultural products significantly affect the gross domestic product (GDP) of the country and can cause the nation to enter the international trade market, or leave it and sell it only for domestic consumption. These factors are more pronounced in developing world countries, as their economies are often largely based on the production of agricultural products, but the first world nations are also constantly involved in regulatory maneuvering to promote their products abroad. The 2000 report and an analysis of about 5,500,000 US companies found that only 4% of them were involved in the export market. However, such exporters were considered to be more stable components than their counterparts, who do not exist, survive longer and have higher profits for their industries, which allowed them to pay higher wages to workers. This supports PThe fact that involvement in exports and overcoming tariffs and regulatory barriers increases the level of productivity of the company overall. These trends directly affect international trade in agriculture because it is traditionally one of the highest regulated global markets.
On the other hand, it has been estimated that since 2003 almost 70% of the world's poverty population in countries whose GDP is almost entirely based on the production of agricultural products, where exports are decisive for their economic growth. However, these nations are often locked from the world's first foreign markets, where agriculture imports are heavily taxed, or subsidies for local products make more expensive. Groups such as Organization for Economic Cooperation and Development (OECD), Group 34 of the First World Countries including the EU, USA, Japan and Australia that create policies that penalize and limit the imports of agricultural products fromDevelopment nations.
If local subsidies are provided to local farmers in rich countries, it cannot be accessed against developing countries that lack the means of subsidizing their products equally. Cotton producers in the US received in 2002 in subsidies of $ 4,000,000,000 (USD) in subsidies. The Benin Development Nation in West Africa relies on the export of cotton for 85% of its GDP and could not compete against such strong subsidies, which effectively locks it from the American cotton market. These trade barriers also result in unnecessary government expenditures in rich countries and promote mass production of agricultural goods to be sold at low costs, leading to unnecessary impairment of the environment.
As a shelf -deduction of trade, foreign markets open, the impact on local agriculture is one of the short -term problems of structural adaptation. Since foreign food is increasingly available at local level, farmers must review their elections PLOdin to see if they can grow something else that is more profitable. This damages rural communities and farmers who have little space or funds to adapt, but the long -term effect of liberalization of trade is that it increases the flow of agricultural goods across borders.
Three main factors with interdependent effects on international trade in agriculture are local subsidies for agricultural crops, import tariffs and anti -dumping laws. When nations try to export their agricultural products to geographical neighbors who have similar climate and grow similar foods, problems often occur and protinal courts are given. These claims that the nation sells its exports under costs in an effort to obtain dominance of share in the market in another is used as a mechanism for blocking imports. Among the examples of this are charges of anti -dumping in 2001 in the US against Canada and Canada against the US for tomatoes and wood exports. Such disputes are often resolved by world tradeOrganization (WTO), where regional agreements, such as the North American free trade agreement (diesel), will not do so.
Globalization made it easier to move the goods across many borders. With the increasing flow of goods, however, also increases price manipulation. When the import of garlic to the US from China increased by 636%in 1992 to 1993, the American Association of Fresh Czech Producers (FGPA) was looking for anti -dumping protection that led to imports on garlic from China to equalize prices that still existed in 2003.