Climate change and trade in agriculture
Agricultural productivity in both developing and developed countries will have to improve to achieve substantial increases in food production by 2050 while land and water resources become less abundant and the effects of climate change introduce much uncertainty. Already less resilient production areas will suffer the most, as temperatures will rise further in tropical and semi-tropical latitudes and water-scarce regions will face even drier conditions. International trade plays an important role in compensating, albeit partially, for regional changes in productivity that are induced by climate change. While a well-functioning international trade system can support the adaptation to climate change-related challenges, trade policies as such are imperfect instruments to induce less emissions globally. A well-functioning international trading system can support the adaptation to climate change-related challenges. Hence welfare gains from reforms to trade policies may be greater than normally measured if they also reduce GHG emissions globally.
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