The changing landscape of agricultural markets and trade

With regions and sectors becoming more globally connected, countries at all stages of development have a greater common interest in ensuring that international agro-food markets are free from distortions.

The gains from reform are greatest when all countries – developed and developing – act together to reduce trade-related and domestic support. Developed countries benefit from lower prices for their consumers and production shifts towards more efficient sectors. For some countries, the gains largely come from reforming their own distorting policies.

The welfare gains to developing countries are significantly larger when all countries reduce trade-related and domestic support. This is because the benefits from reform for developing countries are critically linked to the actions of other developing countries – reflecting the increase in ‘south-south’ trade.