Do Yesterday’s Disciplines Fit Today’s Farm Trade?

This piece explores how trade and trade policies have evolved over the last decade and considers the possible implications for the multilateral trading system. Since the Doha Round was launched, the importance of developing countries in world trade of agricultural products has increased dramatically. World markets are seeing higher prices, after trending downward for decades. The development of biofuels has had considerable impact on price levels and market adjustment mechanisms, with the risk of rigidifying crop demand. There has been a downward trend in applied tariffs as a result of unilateral liberalizations as well as regional trade agreements. Despite a number of recent protectionist measures, the current economic crisis has not reversed this trend.