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2008 AEC - Reforming agricultural trade under commodity price volatility: can poor african countries achieve food security and economic development?

29-Sep-2008

Global agricultural trade liberalization of the Doha Development Round has been advertised to governments of poor countries as a forum to reduce rich country subsidies, raise commodity prices and to galvanize agricultural trade as an engine of economic growth and development. However, successive talks have hit a stalemate, and recent commodity price surges are a concern for food importing African countries. In principle, trade liberalization is expected to remove trade barriers and lower subsidies in developed country markets so as to improve international prices for farmers in developing countries. Commodity price increases are also viewed as a major catalyst in spurring economic development by increasing export and foreign exchange earnings.

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