IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v53y2022i4p563-579.html
   My bibliography  Save this article

Agriculture in a more uncertain global trade environment

Author

Listed:
  • Kym Anderson

Abstract

The global trade environment is more uncertain now than it has been for decades. In the short term, bilateral trade “wars” and the COVID‐19 pandemic have added to longer‐term uncertainties such as sporadic national policy responses to climate change, to the digital revolution, to up‐scaled assertiveness and economic coercion by rapidly growing China, and to antiglobalization groups. The underlying concerns could be reduced through greater multilateral cooperation, but that has been in short supply in recent years, not least because of eroding support for globalization. This article re‐examines the case for greater unilateral openness to agricultural trade in the wake of uneven economic growth and structural transformation as food systems respond to this increased uncertainty and to growing pressures for agriculture to become more sustainable and for food to be safer and more nutritious. The article concludes by pointing to better policy options than trade measures for achieving most national objectives—options that can simultaneously benefit the rest of the world in terms of easing natural resource and environmental stresses while supporting economic growth and reducing national and global poverty, food and nutrition insecurity, and inequalities in income, wealth, and health.

Suggested Citation

  • Kym Anderson, 2022. "Agriculture in a more uncertain global trade environment," Agricultural Economics, International Association of Agricultural Economists, vol. 53(4), pages 563-579, July.
  • Handle: RePEc:bla:agecon:v:53:y:2022:i:4:p:563-579
    DOI: 10.1111/agec.12726
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12726
    Download Restriction: no

    File URL: https://libkey.io/10.1111/agec.12726?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Autor & David Dorn & Gordon Hanson & Kaveh Majlesi, 2020. "Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure," American Economic Review, American Economic Association, vol. 110(10), pages 3139-3183, October.
    2. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318.
    3. Hans G. Jensen & Kym Anderson, 2017. "Grain Price Spikes and Beggar-thy-Neighbor Policy Responses: A Global Economywide Analysis," The World Bank Economic Review, World Bank Group, vol. 31(1), pages 158-175.
    4. Jawoo Koo & Abdullah Mamun & Will Martin, 2021. "From bad to worse: Poverty impacts of food availability responses to weather shocks," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 833-847, September.
    5. François Bourguignon, 2015. "The Globalization of Inequality," Economics Books, Princeton University Press, edition 1, number 10433.
    6. David W. Bullock & William W. Wilson & Joseph Neadeau, 2021. "Gene Editing Versus Genetic Modification in the Research and Development of New Crop Traits: An Economic Comparison," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1700-1719, October.
    7. Will Martin & Kym Anderson, 2012. "Export Restrictions and Price Insulation During Commodity Price Booms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 422-427.
    8. Kyle Handley & Nuno Limão, 2018. "Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 5, pages 123-175, World Scientific Publishing Co. Pte. Ltd..
    9. Kym Anderson & Sundar Ponnusamy, 2022. "Structural transformation away from agriculture: What role for trade?," Departmental Working Papers 2022-04, The Australian National University, Arndt-Corden Department of Economics.
    10. Giordani, Paolo E. & Rocha, Nadia & Ruta, Michele, 2016. "Food prices and the multiplier effect of trade policy," Journal of International Economics, Elsevier, vol. 101(C), pages 102-122.
    11. Matin Qaim, 2020. "Role of New Plant Breeding Technologies for Food Security and Sustainable Agricultural Development," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 129-150, June.
    12. Kym Anderson, 2009. "Krueger/Schiff/Valdes Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since the 1980s," School of Economics and Public Policy Working Papers 2009-22, University of Adelaide, School of Economics and Public Policy.
    13. Kym Anderson & Sundar Ponnusamy, 2019. "Structural Transformation to Manufacturing and Services: What Role for Trade?," Asian Development Review, MIT Press, vol. 36(2), pages 32-71, September.
    14. Hertel, By Thomas W. & Baldos, Uris L.C. & Fuglie, Keith O., 2020. "Trade in technology: A potential solution to the food security challenges of the 21st century," European Economic Review, Elsevier, vol. 127(C).
    15. Bernard Hoekman & Charles Sabel, 2021. "Plurilateral Cooperation as an Alternative to Trade Agreements: Innovating One Domain at a Time," Global Policy, London School of Economics and Political Science, vol. 12(S3), pages 49-60, April.
    16. Robert C. Feenstra, 2018. "Alternative Sources of the Gains from International Trade: Variety, Creative Destruction, and Markups," Journal of Economic Perspectives, American Economic Association, vol. 32(2), pages 25-46, Spring.
    17. Sandra Hoffmann & Lydia Ashton & Jae‐Wan Ahn, 2021. "Food safety: A policy history and introduction to avenues for economic research," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 680-700, June.
    18. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    19. Hertel, Thomas & Baldos, Uris Lantz & Fuglie, Keith O., 2019. "Trade in Technology: A Potential Solution to the Food Security Challenge of the 21st Century," Conference papers 333121, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Florian Zabel & Ruth Delzeit & Julia M. Schneider & Ralf Seppelt & Wolfram Mauser & Tomáš Václavík, 2019. "Global impacts of future cropland expansion and intensification on agricultural markets and biodiversity," Nature Communications, Nature, vol. 10(1), pages 1-10, December.
    21. Misak Avetisyan & Thomas Hertel & Gregory Sampson, 2014. "Is Local Food More Environmentally Friendly? The GHG Emissions Impacts of Consuming Imported versus Domestically Produced Food," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 415-462, July.
    22. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," The World Bank Economic Review, World Bank, vol. 2(3), pages 255-271, September.
    23. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773, Decembrie.
    24. Uris L C Baldos & Thomas W Hertel & Frances C Moore, 2019. "Understanding the Spatial Distribution of Welfare Impacts of Global Warming on Agriculture and Its Drivers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1455-1472.
    25. Anderson, Kym & Nelgen, Signe, 2012. "Trade Barrier Volatility and Agricultural Price Stabilization," World Development, Elsevier, vol. 40(1), pages 36-48.
    26. James R. Markusen, 2021. "Putting per-capita income back into trade theory," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 10, pages 187-197, World Scientific Publishing Co. Pte. Ltd..
    27. Maurice Obstfeld, 2021. "The global capital market reconsidered [‘The Missed Opportunity and Challenge of Capital Regulation’]," Oxford Review of Economic Policy, Oxford University Press, vol. 37(4), pages 690-706.
    28. Brian Wright, 2014. "Global Biofuels: Key to the Puzzle of Grain Market Behavior," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 73-98, Winter.
    29. Kym Anderson & Hans Grinsted Jensen & Signe Nelgen & Anna Strutt, 2016. "What is the Appropriate Counterfactual When Estimating Effects of Multilateral Trade Policy Reform?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 764-778, September.
    30. Kym Anderson & John Cockburn & Will Martin, 2011. "Would Freeing Up World Trade Reduce Poverty and Inequality? The Vexed Role of Agricultural Distortions," The World Economy, Wiley Blackwell, vol. 34(4), pages 487-515, April.
    31. Anne-Célia Disdier & Susan F. Stone & Frank van Tongeren, 2019. "Trade and Economic Effects of IRC: Further Empirical Evidence from SPS and TBT Provisions," OECD Trade Policy Papers 224, OECD Publishing.
    32. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, August.
    33. Colantone, Italo & Ottaviano, Gianmarco & Stanig, Piero, 2021. "The backlash of globalization," LSE Research Online Documents on Economics 113860, London School of Economics and Political Science, LSE Library.
    34. Abdullah Mamun & Will Martin & Simla Tokgoz, 2021. "Reforming Agricultural Support for Improved Environmental Outcomes," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1520-1549, December.
    35. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications - Books, The World Bank Group, number 9436, December.
    36. Julian M. Alston & Philip G. Pardey, 2020. "Innovation, Growth, and Structural Change in American Agriculture," NBER Chapters, in: The Role of Innovation and Entrepreneurship in Economic Growth, pages 123-165, National Bureau of Economic Research, Inc.
    37. Gordon Rausser & Steven Sexton & David Zilberman, 2019. "The Economics of the Naturalist Food Paradigm," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 217-236, October.
    38. Regina Birner & Thomas Daum & Carl Pray, 2021. "Who drives the digital revolution in agriculture? A review of supply‐side trends, players and challenges," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1260-1285, December.
    39. Johnson, D. Gale, 1995. "Leonard K. Elmhirst Lecture: The Limited but Essential Role of Government in Agriculture and Rural Life," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183372, International Association of Agricultural Economists.
    40. Kym Anderson, 2010. "Krueger, Schiff, and Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 195-231.
    41. Hofmann, Claudia & Osnago, Alberto & Ruta, Michele, 2019. "The Content of Preferential Trade Agreements," World Trade Review, Cambridge University Press, vol. 18(3), pages 365-398, July.
    42. Swinnen, Johan, 2021. "The political economy of agricultural and food policies," IFPRI book chapters, in: Agricultural development: New perspectives in a changing world, chapter 14, pages 471-502, International Food Policy Research Institute (IFPRI).
    43. Wright, Brian, 2014. "Global Biofuels: Key to the Puzzle of Grain Market Behavior," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt11715438, Department of Agricultural & Resource Economics, UC Berkeley.
    44. Jean-Christophe Bureau & Houssein Guimbard & Sébastien Jean, 2019. "Competing liberalizations: tariffs and trade in the twenty-first century," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 707-753, November.
    45. Giovanni Maggi & Ralph Ossa, 2021. "The Political Economy of Deep Integration," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 19-38, August.
    46. Dave Donaldson, 2019. "Comparative advantage and agricultural trade," Agricultural Economics, International Association of Agricultural Economists, vol. 50(S1), pages 29-40, November.
    47. Douglas A. Irwin, 2019. "Does Trade Reform Promote Economic Growth? A Review of Recent Evidence," Working Paper Series WP19-9, Peterson Institute for International Economics.
    48. Uris L. C. Baldos & Thomas W. Hertel & Frances C. Moore, 2019. "Understanding the Spatial Distribution of Welfare Impacts of Global Warming on Agriculture and its Drivers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1455-1472, October.
    49. Italo Colantone & Gianmarco I.P. Ottaviano & Piero Stanig, 2021. "The Backlash of Globalization," CESifo Working Paper Series 9289, CESifo.
    50. Schultz, Theodore W., 1976. "Leonard K. Elmhirst Lecture: On Economics, Agriculture, and the Political Economy," 1976 Conference, July 26-August 4, 1976, Nairobi, Kenya 182256, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    2. Kym Anderson, 2021. "Agriculture’s globalization: Endowments, technologies, tastes and policies," Departmental Working Papers 2021-26, The Australian National University, Arndt-Corden Department of Economics.
    3. Kym Anderson, 2021. "Food policy in a more volatile climate and trade environment," Departmental Working Papers 2021-25, The Australian National University, Arndt-Corden Department of Economics.
    4. Kym Anderson & Ernesto Valenzuela, 2021. "What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 265-290, April.
    5. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 877-931, Elsevier.
    6. C. Larochez-Dupraz & M. Huchet-Bourdon, 2016. "Agricultural support and vulnerability of food security to trade in developing countries," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(6), pages 1191-1206, December.
    7. Wenting Wang & Longbao Wei, 2021. "Impacts of agricultural price support policy on price variability and welfare: Evidence from China's soybean market," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 3-17, January.
    8. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    9. Anderson, Kym & Thennakoon, Jayanthi, 2015. "Food Prices Spikes and Poor, Small Economies: What Role for Trade Policies," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(1), pages 1-16, March.
    10. Laroche Dupraz, C. & Postolle, A., 2013. "Food sovereignty and agricultural trade policy commitments: How much leeway do West African nations have?," Food Policy, Elsevier, vol. 38(C), pages 115-125.
    11. Kym Anderson, 2013. "Agricultural price distortions: trends and volatility, past, and prospective," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 163-171, November.
    12. Estrades, Carmen, 2015. "The Role of Export Restrictions in Agriculture Trade," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229229, International Agricultural Trade Research Consortium.
    13. Kym Anderson & Signe Nelgen, 2012. "Agricultural trade distortions during the global financial crisis," Oxford Review of Economic Policy, Oxford University Press, vol. 28(2), pages 235-260, SUMMER.
    14. Christian Elleby, 2014. "Poverty and Price Transmission," IFRO Working Paper 2015/01, University of Copenhagen, Department of Food and Resource Economics.
    15. Wenshou Yan & Yan Cai & Faqin Lin & Dessie Tarko Ambaw, 2021. "The Impacts of Trade Restrictions on World Agricultural Price Volatility during the COVID‐19 Pandemic," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(6), pages 139-158, November.
    16. Catherine Laroche-Dupraz & Marilyne Huchet, 2013. "Impact of domestic support and border measures for developing countries’ food security," Post-Print hal-01123056, HAL.
    17. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, August.
    18. Laroche Dupraz, Catherine & Huchet Bourdon, Marilyne, 2014. "Domestic support and border measures: some instruments to reduce vulnerability of food security to trade in developing countries," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182691, European Association of Agricultural Economists.
    19. Kym Anderson & Anna Strutt, 2023. "From re-instrumenting to re-purposing farm support policies," Departmental Working Papers 2023-04, The Australian National University, Arndt-Corden Department of Economics.
    20. Derrill D. Watson, 2013. "Political Economy Synthesis: the Food Policy Crisis," WIDER Working Paper Series wp-2013-050, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:53:y:2022:i:4:p:563-579. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.