What is the role of agriculture in international trade?
International trade in agriculture is governed and managed by various bodies that can affect the quantity of food produced by different countries. The international market and its related laws and regulations have a significant impact on agricultural products and the gross domestic product (GDP) of a country, and all of these determine whether a country enters the international agricultural trade market or only sells its products for domestic consumption. International trade is more prominent in the developing countries of the world because their economies are heavily dependent on agricultural production.
Agricultural markets and international trade
The European Union is the first and most important exporter and importer of products in international agricultural trade. In fact, global agricultural trade contributes to possible shortages of food production for any reason, such as climatic conditions or other reasons, which ultimately leads to the flourishing of the agricultural industry in different countries. In recent years, global agricultural markets have faced many fluctuations that can directly affect the food chain. These things cause price fluctuations that make planning difficult for farmers and buyers around the world.
Agricultural development and international trade
In general, different societies and governments seek to develop agriculture to ensure that sufficient and affordable food is available to the people and that the income of farming households is the same as that of non-agricultural households. Productivity growth in agriculture can help achieve many important goals, and this growth in the agricultural industry can be shaped through international trade.
In order to achieve these goals, each society does not have to implement it alone, in fact, it will be less able due to different climatic conditions and weather fluctuations that add to the fluctuations of domestic production. Fortunately, this can be done through international trade with other societies. International trade can be beneficial in achieving these goals.
The positive role of international trade in agriculture
Various reports, studies, and analyses of data from countries such as the United States and Canada, have shown that companies in the agricultural industry that have exported and participated in the international market were more stable than non-exporting companies, and even in the previous fluctuations They lasted longer and were more profitable and were able to pay higher wages to their workers.
This supports the assumption that entering the international market, exporting and importing agricultural products, and overcoming tariff and regulatory barriers improve agricultural productivity. These trends directly affect international trade in agriculture, as one of the highest global markets.
Last word
In this article, we explained the direct relationship between international trade and agriculture, this international market can play an effective role in increasing productivity in the agricultural industry. There is severe poverty in parts of the world whose gross domestic product is based on agricultural products. export and international trade are vital for their economic growth and escape from this poverty.