Policy Support and Governance Gateway

Trade Policy

Over the last decade, there has been a proliferation of bilateral, plurilateral, regional and mega-regional trade agreements. The volume of trade is projected to expand for most agricultural commodities, trade rules are ever more complex, and trade instruments are being used by some countries in times of food crisis to guarantee available and accessible food.
 

Making trade work for improved food security and nutrition

Trade impacts directly on food volumes and prices in national markets and hence affects each dimension of food security (availability, access, utilization and stability).

FAO supports members in multiple ways, providing: information and in-depth analysis on the possible consequences of trade policies; capacity development to improve understanding of international trade rules and their implications; neutral forums for dialogue between trade and agriculture stakeholders; support to regional trade integration; and assistance in preparing for trade negotiations and in implementing agreements.

Key messages

Trade policy has a critical role to play in eradicating global hunger by 2030, but trade alone cannot address all of the socioeconomic and political challenges that influence food security and nutrition.

Multilateral trade rules, which take into account the specific needs of developing countries, are needed to ensure that the expansion of agricultural trade is conducive to the eradication of hunger, food insecurity and malnutrition. This is particularly pertinent in times of crisis. Global crises such as climate change, conflicts and pandemics are reminders of the importance of international trade in mitigating the impacts of shocks and protecting livelihoods while ensuring food security.

Trade policies must consider the different needs and roles of both large-scale agricultural producers and those of smallholder and family farms.

Sound policies for food security and nutrition balance a reliance on trade with domestic production to ensure stable food availability and accessibility. At the same time, policies should raise income levels for the rural poor and improve nutritional value in food chains.

FAO assists its members in strengthening their capacities related to international trade agreements and the promotion of export opportunities. The focus is on the development of evidence-based analyses, knowledge sharing, technical assistance and dialogue on key issues related to food and agricultural trade, including regional and multilateral trade negotiations.

It’s crucial to develop an ever-improving framework for trade-related policy-making processes in accordance with standards and regulations set in place by the World Trade Organization (WTO). FAO aims to make trading systems as free, fair, predictable and inclusive as possible on local, national, regional and global levels.

 
Latest resources
Evolution of global agrifood trade and trade policy and implications for nutrition
2025

This research project examines patterns and developments in the links between agrifood trade and nutrition and assesses how trade policy shapes food...

The State of Agricultural Commodity Markets 2024 - Trade and nutrition: policy coherence for healthy diets
2024

The 2024 edition of The State of Agricultural Commodity Markets (SOCO 2024) explores complex linkages between food trade and nutrition and generates...

Trends in inclusion of environmental related provisions linked to the agriculture, fisheries and forestry sectors in regional trade agreements. Trade policy briefs, No. 54
2024

This brief discusses the relationship between the agriculture, forestry and fisheries sectors, trade and the environment; presents the relevance of...

The importance of international trade for fisheries and aquaculture products. Trade policy briefs, No. 52
2023

This policy brief discusses the importance of fisheries and aquaculture, provides an overview of key statistics on fisheries and aquaculture products,...

The status of fresh markets in Dhaka − Working to transform the city's food system
2023

The report will be helpful for the urban planners and the policymakers to develop a long-term strategic vision for Dhaka through the much-needed discussion...

The State of Agricultural Commodity Markets 2009. High food prices and the food crisis – experiences and lessons learned
2009

The State of Agricultural Commodity Markets 2009 aims to bring to a wider public an accessible discussion of agricultural commodity market issues and...

Ex-Post Evidence on the Effectiveness of Policies Targeted at Promoting Healthier Diets. Trade Policy Technical Notes. No. 19. Trade and Food Security
2017

This note provides a structured review of adoption trends of national policies aimed at promoting healthier diets and collates evidence on their...

Trade and Nutrition Technical Note. Trade Policy Technical Notes No. 21. Trade and Food Security
2018

This technical note explores the impact of trade on nutrition, addressing the role of trade in the “nutrition transition” and the extent to which trade...

Meat Market Review
2019

The publication provides a review on global meat price and policy developments. It aims to provide a snapshot view of global meat price movements and...

Access to markets for small actors in the roots and tubers sector. Tailored financial services and climate risk management tools to link small farmers to markets. FAO Agricultural Development Economics Technical Study 5
2019

The roots and tubers industry in sub-Saharan Africa has been growing steadily in recent years. Nevertheless, a series of challenges, including lack...

Series: The food system and the challenges of COVID-19. Food e-commerce: situation and perspectives
2020

Critical analysis of the momentum that eCommerce has had in the framework of the COVID-19 pandemic. In addition, future perspectives and recommendations...

The African Continental Trade Area Agreement and agricultural development: challenges and prospects. FSN Forum in Africa report of activity No. 15
2020

This document summarizes the online discussion The African Continental Free Trade Area Agreement and agricultural development: challenges and prospects...

The effects of global value chain (GVC) participation on the economic growth of the agricultural and food sectors. Background paper for The State of Agricultural Commodity Markets (SOCO) 2020
2020

Trade liberalization has long been advocated as a means to foster growth and welfare. In developing countries, the expansion of global value chain (GVC)...

Understanding international harmonization of pesticide maximum residue limits with Codex standards. A case study on rice
2020

This publication sets out to explore the issue of harmonization of national pesticides Maximum Residues Limits (MRLs) with Codex pesticide MRLs from...

Food Outlook – Biannual Report on Global Food Markets. COVID-19 Special Edition
2020

Food markets will face many more months of uncertainty related to the COVID-19 pandemic. However, while most markets are braced for a major global economic...

Policy responses to keep input markets flowing in times of COVID-19
2020

The COVID-19 pandemic poses a substantial risk to agricultural input supply chains. It can detrimentally affect access to and availability of inputs,...

Measures for supporting domestic markets during the COVID-19 outbreak in Africa
2020

As COVID-19 reaches a growing number of communities across Africa, governments’ efforts to contain the spread of the virus need to be accompanied by...

Europe and Central Asia: Regional food market situation and policy bulletin in response to the COVID-19 pandemic
2020

According to the FAO Global Information and Early Warning System (GIEWS), cereal production in 2019 and the estimated closing stock in 2019/20 are both...

Migrant workers and the COVID-19 pandemic
2020

The policy brief reviews the impacts of the COVID-19 pandemic on migrants working in agri-food systems and their families in rural areas of origin....

OECD-FAO Agricultural Outlook 2021–2030
2021

The Agricultural Outlook 2021-2030 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture...

FAO Policy Series: Trade policy
21/04/2016

Trade has a critical role to play in eradicating global hunger. It has a direct impact on food prices and volumes. Boubaker Ben Belhassen, Director...