Antidumping and countervailing duties in the agricultural sector

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ANTIDUMPING AND COUNTERVAILING DUTIES IN THE AGRICULTURAL SECTOR

1. INTRODUCTION TO ANTIDUMPING AND COUNTERVAILING DUTIES

1.1 Definitions and Key Concepts

Trade remedies refer to action that is taken by countries to counter unfair trade practices and

protect domestic industries from cultural or otherwise damaging competition, antidumping (AD)

duties are employed when goods imported into a country effectively sell at lower prices than they

are expected to in the domestic market hence affecting market prices set by domestic producers.

These duties are applied following a poll by national governments to establish if dumping is rife

and if it is having a material impact on local industries. Another important trade remedy is

countervailing duties (CVD) meant for the ends of protecting domestic industries from

subsidized foreign ones. To achieve this, they seek to apply duties equivalent to the amount of

subsidy and hence counteract its impact. Safeguard measures offer only limited remedy to

domestic industries that experience promptly a sharp rise of imports that may lead to serious

injury, they are usually used when the import threat unexpectedly rises, which provides domestic

firms with an opportunity to re-organize and achieve competitive advantage. All of these

remedies function under the legal structures that demand thorough research and the compliance

with the international rules and regulations to prevent the misuse of these procedures in

protectionist regard as arbitrary. Trade remedies are important for the protection of domestic

Industries but their application often gives rise to trade tensions and dispute therefore shows the

intricate balance of free and fair trade for globalization and liberalization of markets. With

shifting international trade relations, efficient and efficient usage and application of the trade

remedies remain core in the formation of a healthy and liberal world trade system.

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1.2 Historical Context and Development

International trade measures have had a pragmatic transformation owing to the changes in the

economic structure and international business environment. Developed following the great

depression time, safeguard measures became an important instrument that can protect domestic

industries from sudden negative import inflow. That rules concerning safeguard measures

originate as far back as the General Agreement on Tariffs and Trade (GATT), 1947 to say the

least provided basic framework for the utilization and possibly the regulation of safeguard

measures. Nonetheless, it was during the Uruguay Round of trade discussions that begun in the

1980s and ended in 1994 that trade remedies proliferated and were further developed under the

WTO. They are these rounds of talks sought to improve the discipline and predictability of AD/T

and aspects of CVD and safeguards so as to assure their proper equitable use for the protection of

the economy of the importing as well as exporting countries, for measuring trade remedies, the

Uruguay Round agreements set out clear principles for investigating and applying trade remedies

ensuring fair trade and protecting the rights of domestic industries to fair and nondiscriminatory

treatment in the international markets. This evolution is still continued in order to meet the

contemporary challenges of trading activities by trying to continue to use the trade remedy

mechanisms as powerful weapons in combating unfair trading practices and protecting domestic

industries from injurious competitive pressures in today’s becoming highly competitive and

complex economy.

1.3 WTO Agreements on Antidumping and Subsidies

In the WTO structure, the agreement titled ‘On implementation of Article VI of the GATT 1994’

is very significant as it arbitrates on antidumping measures for ensuring that these measures are

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prejudicial and consultative. The AD duties may only be levied if the WGTD member proves

that the imported goods are being sold at prices below the domestic market prices inflicting or

likely to inflict material injury to the domestic industries. This agreement clearly outlines the

mechanisms of conducting preliminary and final determinations of dumping as well as

determining the amount of dumping margins through laying out of procedures beneficial to the

importing as well as exporting countries. Likewise, trade in goods is also governed by the

Agreement on Subsidies and Countervailing Measures (SCM Agreement), which controls the

application of countervailing measures, that is countervailing duties (CVDs), aimed at offsetting

subsidies which trigger trade distortion. However, WTO members are required to provide

evidence that subsidies under consideration and which are granted by foreign governments have

led to negative impact which includes but not limited to hurt or being not proactive to a domestic

industry, or depressing the price of services. With respect to countervailing measures, the SCM

Agreement provides principles for studying and assessing the subsidizing programs so that the

countervailing measures are undertaken only in case of true discordant trade conduct, both

agreements both seek a ban on the use of trade remedies for purposes of protectionism but offer

protection on trade for legitimate concerns. Through adherence and compliance to the principles

of non-introduction of new technical barriers as well as maintaining transparency, procedural

fairness, as well as high standards of evidence as are provided by the DC which adopts a rules-

based system of trading, the WTO helps create legal certainty that contributes to mutual

confidence and stability of the trading parties’ mutual relationships.

1.4 Rationale for Trade Remedies in Agriculture

Among the tools of protection from unfair competition and distortion of markets, important

priority is given to antidumping (AD) and countervailing duties (CVD), as well as safeguards.

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This element asserts that agricultural industries are more sensitive to dumping and subsidized

imports because of factors such as prices’ fluctuations and high production costs, AD measures

are crucial as it may allow foreign producers to export products at less than cost in domestic

markets hence competing away the local farmers. CVD measures are also equally effective in

countering the effect of subsidies offered by foreign governments where they interfere with the

natural market forces by providing value added prices for their agricultural products exports.

These remedies make it possible for domestic growers of agricultural produce to operate on the

same level as foreign farmers as well as protect fair competition within the market and guard the

stability of the food market. Aid is supplemented from safeguards that offer temporary measures

that help during moments of fear by increased imports that cause too much pressure on domestic

markets. Safeguards include the justification of temporary tariffs or quotas to help domestic

agricultural industries by giving them sufficient time to adapt to compete with the foreign

production. Hence, this mechanism safeguards farmers, and the agribusiness entities apart from

maintaining the stability and robustness of the abodes of domestic food production systems. In

agriculture, because economic conditions, and the dynamics of the global markets can be very

volatile, the appropriate use of Trade Remedies under WTO regulates to protect the interests of

both importing and exporting countries and enforce fairness and stability on the global trade,

these measures play its part in stabilizing the agricultural markets as they enhance sustainability

of agricultural markets while aiding the cause of food security objectives globally.

1.5 Overview of Global Usage in the Agricultural Sector

Despite increased use of trade remedies around the world, agriculture remains one of the primary

areas that such measures are used because it is one of the largest sectors in most countries’

economies as well as being central to food security (Brink, 2015). Trade remedies in agriculture

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are used by countries to shield staple crops, livestock, and processed foods from unfavorable

practices likely to harm local production and incomes in rural areas. For example, antidumping

(AD) measures stop foreign producers from selling their goods at low prices which is usually

unaudacious to domestic farmers. CVD allow domestic producers to compete fairly with

subsidized imports, because it corrects the subsidy granted by foreign governments which puts a

pressure on price. Measures offer a form of shelter for a certain period from threats such as

import penetration which have potential to severely harm domestic industries. These trade

remedies differ in terms of the frequency and results achieved in various regions and

commodities; both developed and developing countries use trade remedies on agriculture

products (Capehart & Schnepf, 2019). Still, there are some controversies connected with the

misuse of trade remedies and their negative impact on the WTO members’ trade relationships as

well as their ability to potentially disrupt the trade when one member shelters behind the WTO

rules. This is important by ensuring that measures are not protectionist while allowing what

WTO considers as appropriate measures to address cases of actual instances of unfair trade

practices, it is crucial to grasp these concepts and their application in the context of agriculture to

sort out the main features of international trade and to get a better understanding of the

paradigms that can help to find the ways how to provide more fair tone in trade policy. These

outcomes should stimulate the economic growth, food security and sustainable development

worldwide and meet the interests both domestic agricultural producers and global common

agenda of fair and open trade system.

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2. ECONOMIC THEORY AND ANALYSIS

2.1 Dumping: Types and Economic Implications

Dumping means selling goods at a price below normal price, which may be the price prevailing

in the markets of originating country or the cost of production. These strategies in dumping thus

have many economic consequences depending on the types of dumping being employed.

Predatory dumping refers to the act of sellers setting low prices to their foreign counterparts with

the intention of forcing them out of the market then afterward they increase their prices (Egger &

Nelson, 2011). The kind of dumping harms domestic producers through market share losses and

decreased profits and might result in business shutdowns and consequent layoffs. On the other

hand, isolated dumping occurs from time to time and is more common when exporters offload

inventory at throw-away prices, as a result of which, they flood the local market, and this always

leads to market instability for domestic producers. While the former consists of exporting goods

at below-normal price for a period of at least two years, the latter works in similar pattern but has

a characteristic that it is a consistent exporting of goods at a lower cost than could offer a

reasonable opportunity to develop new methods of production hence causing long-term injurious

effects to the affected industry. In an attempt to minimize or prevent these negative effects,

countries use antidumping (AD) measures with the aim of levying extra duties on dumped

imports so as to align the imported goods’ prices to the fair value and protect domestic industries

from unfair competition. All these measures are important in as much as promoting fair market

environment and more importantly protecting the domestic producers in their bid to compete on

the international market. Nevertheless, the use of antidumping measures should be conducted

with care because of possible protectionism and unlawful actions in the framework of the WTO.

The purpose of antidumping measures is to safeguard domestic industries while at the same time

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adhering to the concepts of free and fairness in trade; this is possible through the carrying out of

investigations and making of proper assessments that can help to achieve the intended goal

(Blonigen, & Prusa, 2016). On the other hand, non-coercive or competitive dumping, may be

because of differences in cost of production or other market conditions, between the exporting

and importing nations (Felbermayr & Sandkamp, 2020). Consumers in importing country gain

because they are able to buy goods cheaper, but domestic producers can struggle to compete with

these relatively cheaper imports. Some of the consequences the act of dumping can have on

importing countries are; It distorts the international market and negates fair trade competition

since it can eliminate domestic industries, thus making importing countries put in place

antidumping duties (Davis, 2012).

2.2 Subsidies: Forms and Market Distortions

Government subsidies in international trade could be in form of direct payments, tax reliefs, or

subsidized credit advanced to domestic firms, such financial assists are usually aimed to spur

production, export more goods and improve competitiveness of domestic enterprises. Though it

is a fact that subsidies help to provide growth and development benefits to the industries as it

opens paths for scaling up the operation, investing in new technologies and competitive

advantages in the world markets but still they distort the market. Subsidy can be used by

artificially putting down the production cost and the price and hence the surplus of products can

fill up the international market space (De Loecker et al., 2016). Thus, excess supply of

subsidized products distorts the international market and imbalance which subsequently leads to

a low price to have a distorted competition all through. It gives local producers in the affected

countries a raw deal because now they are forced to compete with imported products that are

priced relatively low courtesy of the subsidies. These market distortions can impact negatively

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non-subsidizing countries’ agriculture and manufacturing businesses, resulting in lesser earnings

for farmers and producers as well as possible layoffs and uncertain economic conditions. In

addition, the usage of subsidies frequently results in trade tensions and can always be met with

reactions in form of equivalent actions from the counterparts, thereby interfering with the

international trade relations. This is made possible by the SCM Agreement that addresses WTO

members’ use of subsidies in a bid to eliminate trade distortions whereby subsidies are classified

based on their impact on trade with the affected members being allowed to apply countervailing

duties on the subsidized products that are found to harm domestic industries. A viable steering of

subsidies and subsequent compliance is the key to sustaining fair trade, development, and

rightful competition in the market other than through subsidy interferences. In the same respect,

subsidies lead to inefficiency and decrease incentive for innovation in industries where the

subsidies are provided hence discouraging the need for the industry to search for efficient ways

of carrying out its activities (Francois & Niels, 2006). In the case of subsidies for instance in

agriculture, they can promote inefficient strategies in farming and increase the rate of

environmental pollution. In light of this, the WTO’s SCM Agreement seeks to discipline and

regulate subsidies in a bid to temper their negative consequences on the trade and competition

arena (Evenett, 2019).

2.3 Welfare Effects of Antidumping and Countervailing Duties

The phenomenon of AD and CVD can have significant effects on welfare of the importing as

well as the exporting countries. AD duties are deployed to level the trade playing field with

regard to dumping, which applies when exporters offer goods at a price that is lower than the

normal value in their home market, thus threatening local producers. According to Feinberg and

Reynolds (2018), AD duties are levied by importing countries to safeguard their industries from

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unfair competition which in turn entails protecting jobs and income. Likewise, CVDs are applied

to offset the DPIS that have a bearing of offering foreign governments a unique competitive

advantage resulting from subsidies. Although these measures benefit domestic producers, they

result to higher cost for importing organizations and consumers. The use of AD and CVD

measures tends to result in an increase in the prices of the imported goods, hence, the consumer

surplus is affected in that they are deprived access to cheaper goods that are available in the

international market (Gawande et al., 2015). This can result in a higher price level and this may

impact many organizations relying on imported intermediate goods hence, resulting in lower

efficiency in the economy. In addition, relying on AD and CVD measures may lead to reactions

from the exporting countries that turn into trade tensions and even conflicts which may

negatively affect the international trade relations (Feinberg & Reynolds, 2018). Such trade

disputes therefore produce augmented trade restrictions, diminished market access, and spiked

unknown in the trading system which are detrimental to global economic development. Thus, the

intents and impacts of trade remedies underlie the conflicts of short-term interest in employing

trade defense measures for supporting domestic industries and the strategic vision of the

promotion of consumer interest and fair competition in the global economy. One should admit

that these divergent objectives should be met in order to use trade remedies in a best way,

avoiding negative consequences but investigating fair cases of trade abuse.

2.4 Impact on Domestic Producers, Consumers and International Trade

The effects of the implementation of antidumping and countervailing duties (AD/CVD) in the

agricultural sector affect the domestic producers in that they receive favorable market prices and

consumers because they do not have to pay high prices for the imported goods . As measures to

these local manufacturers, they provide a strong protection against unfair trade, including the low

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prices that reflect below the actual cost of the agricultural products and in most cases subsidized

by foreign governments. In this case, AD/CVD enables domestic producers to effectively

challenge these artificially low cost products hence achieving steadiness within the market share

and prices thus creating sustainability for their economy and employment outlets (Bown &

Crowley, 2013). But for consumers, going from one currency to another — complicated and

involves rather different factors. Although these duties aid in sustaining the sustainability of

domestic agriculture, they at the same time cause an increase in the prices of agricultural

products. This is due to the fact that elimination of low cost imports results eliminates

competition presssure and this may result to high prices for food and other agriculturally

produced goods in the domestic market as indicated by Irwin (2005). Thus, an escalation in

prices impacts the poor consumers more since they spend a significant amount of their income

on food. In the international trade, the use of AD/CVD may cause trade friction and the exporter

country’s retaliatory action, which makes trade relations and negotiations in the WTO more

challenging (Bown, 2010), these tensions are able to destabilize the global supply chain and they

cause some problems in the international trading system. Additionally, AD/CVD measures can be

also viewed as protectionist, which may attract challenges at the WTO under the WTO’s dispute

settlement system, thereby entangling the international trade webs (Finger, 1993). Hence, while

antidumping and countervailing duties are intended to protect the domestic agricultural

producers from unfair competition, they have beneficial and adverse effects on consumers and

international trade relations and so their application requires moderation.

2.5 Theoretical Debates and Criticisms

Controversy over AD and CVD instruments focuses on whether they should act for market

correction or protectionism misuse. SMEs supporting AD and CVD measures pointed out that

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these measures are needed to protect their countries from unfair trade practices that include

dumping and subsidization that threaten domestic industries through underselling and unfair

competition (Egger & Nelson, 2011). In this respect, the above-mentioned measures introduced

duties on fairly traded imports in order to aim to equalize the competitive pressures, preserve

employment, and maintain domestic economic revenue. However, the critics on this view argue

that trade remedies can be utilized strategically or politically rather than being used where there

is actually unfair competition (Davis, 2012). This misuse may be manifested in protectionism

whereby trade remedies belong to a toolset to prevent competitive advantages rather than to

facilitate a fair trade. The issues of time and costs for the initiations of both AD and CVD

investigations are also raised. Especially for small and developing countries with scarce

resources, the international legal and bureaucratic framework of these investigation is complex

and expensive (Blonigen & Prusa, 2016). This may discourage such countries to pursue remedies

against unjust treatment in the trade relations hence worsening the imbalances within the trade

system, the ability of trade remedies in affecting efficient world allocation and consumers’ gains

or losses remains a topic of debate. Although specific AD and CVD petitions benefit producers in

the United States, they sometimes result in prices increases and decrease product differentiation

for the consumers that are unlikely to improve well-being and resources allocation between

industries. Experts stress the necessity of robust evidence of injury to domestic industries before

applying trade remedies; advisable non-manipulable and clear procedures that avoid exploitation,

supporters of measures state that such measures are needed to level the competitive playing field

and protect a nation’s economic interests. Efficient for these theoretical discourses, trade policy

needs to draw a line between efficiency, consumers’ welfare and equal competition on one side

and on the other obligations to multiples disciplines regulating international trade.

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3. LEGAL FRAMEWORK AND PROCEDURES

3.1 WTO Rules and National Legislation

WTO is another body governing international trade and as for the anti-dumping and

subsidization, members of WTO have a clear system of how and in what ways such cases can be

ruled. The WTO’s AD and SCM rules set out the precise ways by which member countries may

apply duties, under the auspices of the AD and SCM Agreement, to respond to unfair trade

practices (Goldberg & Pavcnik, 2016). These are the kinds of agreements that will help in

determining how trade remedy measures are implemented in a manner that is most appropriate

and fair for all the member countries, the rules must be incorporated into the nation’s laws at the

national level and this is imperative to ensure equal measures of consistency and certainty in

trade remedy investigations and actions. National laws play a central role in the administration

and application of WTO norms dealing with antidumping and subsidies, it lays down elaborate

standard operating procedures for triggering investigation processes, finding out the nature and

extent of losses and identifying suitable corrective actions (Irwin, 2005). For instance, the

member countries shall define the factors that would enable the determination of whether

dumped or subsidized imports have caused or are likely to cause material injury to the domestic

industries. This entails specific comprehensive analyses and reviews on factors which include,

but are not limited to, import quantities, price change influence and its overall deterrence on the

country. As a result, national legislation can effectively be harmonized with WTO rules to protect

the WTO’s intended trade remedy procedures, such an alignment helps to make sure that some

investigations are made according to specific standards that cannot be deemed as equal to

discrimination or prejudice. It also affords legal certainty and transparence to the various parties

most of whom are domestic industries that require protection and countermeasures foreign

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exporters that are faced with potential duties among others, such alignment contributes to the

WTO’s aims and objectives of combating the protectionist misuse of trade instruments.

Standardization and domestication of WTO rules, thus, ensures a rules-based Trading System

where trade remedies are used, claims solved, and Member Countries are ready to confront the

threat that emanates from unfair trade while at the same time upholding Free and Fair trade.

3.2 Determination of Dumping and Subsidization.

Dumping and subsidization are defined through a very painstaking process that includes the

assessment of import prices, costs of production and financial assistance from the exporting

country’s government to their corporations in the international market. Gain dumps happen when

products sold in the export markets are sold at prices which are below the typical prices of

similar products in export markets home country, a wrong technique that has negative impacts

owing to the fact that it offers products at prices that domestic producers cannot match. Whereas,

the Subsidization is the direct financial contribution by governments that provide an advantage to

certain industries and thus alters competitive balance in the global trading system (Konings &

Vandenbussche, 2013). These contributions can work in forms of direct payments, tax credits, or

concessional loans whereby the costs of production are reduced and the competitiveness of

strengths are virtually boosted. The WTO guidelines apply methods on how to compute the

dumping margins and subsidy rates in trade remedy measures to avoid subjectivity in research

for trade remedy investigations (Josling et al., 1996). These methodologies compel the

authorities to undertake the exercise of comparing the export price of the product with its normal

value in the home market of exporting country or with an estimated value arrived at on the basis

of the various production costs and a reasonable percentage of profit. Likewise, the amount of

subsidies can be determined with references to the monetary assistance provided to facilitate

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export promotion and the ability of this cash injection to alter the price of the exported products.

Applying LM, authorities usually receive and check data from exporters, importers and

independently produced information to assess the pricing activities and financial contributions,

the process of gathering and verifying the data is essential for creating the premise for

introduction of antidumping duties and countervailing measures intended to counter the

proscribed impacts of unfair trade practices in order to shield domestic industries from being

injured by dumped or subsidized imports. Regarding the determination process, it supports the

need for fair and procedural trade remedy investigations. In this sense, authorities should be

committed to applying the best trade remedy available, following standard patterns and

institutionalized criteria because trade remedies should not only be applied fairly and efficiently,

but also at the same time be compatible with the WTO aims of freer trade.

3.3 Injury Determination and Causal Link

The process of injury determination entails an analysis of the effect of the dumped or subsidized

imports on the causal industry in trade remedy investigations, investigating authorities of WTO

need to demonstrate a direct causal relationship between the unfair trade practices under

examination and the material injury suffered by the domestic industry as pointed out by Grant &

Boys (2012). Material damage involves the loss on key commercial measures such as market

share, profitability and their implications in the social aspect through the effects on employment

figures, these investigations performed by authorities involve assessment of injury claims

involving quantitative as well as qualitative analysis. Some of elements of this evaluation would

entail a comparison of the negative effects that include price undercutting in which imported

goods are sold at cheaper prices to the domestic products hence increasing losses and market

share for domestic producers, assessment includes lost sales opportunities, shifts in production

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capacity utilization and gives a clear picture of the economic harm that has been caused to the

domestic industry. This requires one to separate out the effects of dumped or subsidized imports

from other factors that may affect the situation on the market and guarantee that the observed

relationship is clear and definite. This is important because other factors that might include

consumers’ preference, availability of technology, or macroeconomic factors can impact on the

performance of the domestic industries, it becomes indispensable to design and employ a

thorough and narrow research strategy in order to identify the role of unfair trade practices. Thus,

by applying such strict standards of evaluation, authorities guarantee that trade remedies,

including anti-dumping duties or countervailing measures, are provided wisely. This measure fits

WTO regulations targeting at offering temporary support to the domestic industries hurt by

foreign competition without drifting off into protectionism, the goal in this case is to ensure that

the crucial forces in trade are reciprocated and fair competition is upheld so that local

manufacturers are protected from actually destructive trade practices while at the same time

preventing unwarranted trade barriers that affect the flow of trade in the global market. This

balance message signifies the general need for an accurate and effective way of compiling an

injury list in any international trade systems.

3.4 Investigation Processes and Timeline

Trade remedy investigations are conducted systematically with more or less checklists and

timeframes that are compliant with WTO regulations and domestic laws. When an official

complaint or initiation request is made, the authorities review the plausibility of allegations

concerning dumping or subsidization (Kee et al., 2013). Where this preliminary is suggestive of a

rational cause for the allegations, then a detailed investigation ensues. These investigations

typically take several months; this gives adequate time to accumulate and analyze information.

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During the investigation period, the exporters, importers, and domestic producers can provide

evidences, participate in the hearing sessions and answer the questionnaires (Krueger, 2020).

Government is extremely scrutinizing in analyzing all the financial records, prices, and tariff

information regarding the commodities, and all data in a bid to assess the injury claims and

determine the genuine dumping margin or the correct amount of subsidy, it involve a clear

analysis of the costs, the sales and the overall market that has to be studied to have a clear view

of the company. In this process, principles of openness and justice are respected because

participants are provided with the same rights to offer their arguments against opponents’

arguments and proves their words’ efficacy or ineffectiveness. The rationale for the conclusions

by engaging in minute analysis of data is that conclusions are backed by concrete evidence.

Upon reaching the conclusion of the findings, the information gathered in the investigation is

captured in professional reports. These reports support the decisions to apply or deny the trade

remedies thus conforming to the legal standards that govern international trade. The final

determination does not only give the final decision on the specific allegation, but also gives

reason for the final decision and this is very crucial for the trade remedy system. This difficult

process ensures that trade remedies meet the objective of safeguarding domestic industries

against unfair trade practices but at the same time complies with the country’s obligations under

the international trade laws.

3.5 Dispute Settlement Mechanisms

Trade remedy measures entail action that WTO member nations take in response to what they

regard as unfair trading practices of other countries; Dispute settlement mechanisms in the WTO,

afford a framework for the achievement of the resolution of disputes emanating from the use of

trade remedies. A member may request consultations for the trade remedy action which they

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think is against WTO rules or prejudicial to her or his trade interests (Goetz & Roth, 2020). It is

to be noted that these consultations should be mind-bending to understand an issue, discuss

possible ways to resolve an issue, and to avoid transition to claims and awards. In case

consultations fail to get a solution, the complaining party may demand the formation of a dispute

settlement panel to deliberate on the matter (Krueger, 2020). It receives panels’ consideration of

evidence, takes submissions from both sides, and adopts panel reports on the conformity of the

trade remedy measures with WTO agreements. After a panel has made a decision on a dispute,

there may be a request for an Appellate Body review in order to promote coherence and the clear

depiction of the common principles on the dispute resolution procedure. This multilayered

approach does not only maintain the legal system of the WTO but also serves for stability and

fairness in international trading system having rule on every layer. Some elements are considered

essential in the economic partnership as a proper set of tools for a conflict settlement helps to

avoid a trade war, which usually emerges in the context of international trade conflicts. These

mechanisms are intended for all the member countries to be able to afford a fair trial as do not

differentiate the economy of each country. It is crucial for the persons interested in specific types

of trade relationships to understand these processes because then the individuals will be able to

protect themselves according to the WTO agreements, effectively participate in the identification

of the violation of trade relations, and prevent its negative impact on the stability and

effectiveness of international trade, having an open and fair dispute resolution system, the WTO

remains an essential actor in maintaining the order in the trade relationships which are crucial for

both stability and growth of the global economy.

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4. CASE STUDIES IN AGRICULTURAL TRADE

4.1 Dairy Products (e.g., Milk Powder, Cheese)

Milk powder and cheese form part of the popular dairy products that are important in

international agricultural trade with many products experiencing one policy measure or the

other, the dairy sector is faced with many challenges including those to do with subsidies and

market access barriers and they impact on both the developed and the developing countries. As

the two leading producers and exporters of dairy products the EU and the US tend to subsidize

their industries, for instance (Lester, Mercurio, & Davies, 2018). These are referred to as

subsidies under the WTO Agreement on Agriculture and incentive the domestic producers but

adjust market distortion. Specifically, these subsidies lead to oversupply and global prices that

are far from what is beneficial to producers from countries without such subsidies. These gaps

can deepen such disadvantages as sliders whereby dairy producers from the developing countries

find it difficult to compete with their counterparts from developed countries whose products are

subsidized. Moreover, another challenge is posed by trade barriers which are inimical to the

exportation of dairy products; these limits include tariffs and import quotas. These barriers can in

a way hinder exports by producers of those products in the specific country hence reducing the

overall market share of the country and possibly it’s revenue. Disputes relating to matters arise

from these issues as countries try to protect its markets and at the same time, respect WTO rules,

such disagreements can only be solved through consultations and using WTO guidelines in a

manner that balances trading relations. The demands of dairy products are rapidly increasing all

over the world and has become important to deal with the issues of subsidies and the market

access so as to enhance a sustainable global dairy trade, it becomes useful and crucial for the

policymakers or those who are directly or indirectly involved in the global agricultural trade

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activities to gain some insights into these trade policies in order for them to be able to understand

as well as approach the complexity that characterizes current international agricultural trade.

4.2 Fruits and Vegetables (e.g., Tomatoes, Citrus)

Tomato, other vegetables and fruits such as orange and other citrus fruits are some of the main

products that are seasonal and perishable hence requiring agricultural trade. These products’

trading pattern is characterized by tariffs, non-tariff barriers, as well as sanitary and

phytosanitary measures. The imposition of tariffs tends to imply that imported foods such as

fruits and vegetables are expensive and therefore may not be competitiveness in the foreign

markets. There is also barred restricting through quotas and import licensing which are non-tariff

measures of market access restrictions. Both sanitary and phytosanitary measures which have the

objective of preserving human, animal and plant health are the cause of controversy in those

cases where importing countries set those restrictions based on the safety of food products. These

restrictions can limit the access to a market for exporting countries thus enabling the formation

of trade friction that comes with the need to be resolved through negotiation or through legal

frameworks on trade dispute settlement (Melitz & Redding, 2014). Furthermore, the situation in

the fruits and vegetables sector, regarding trade, is also characterized by some peculiarities and

the main one is the fluctuations in prices for the given product due to supply chain instabilities.

Varietal production cycles imply that certain fruits and vegetable types are produced at one time

of the year than the other which may cause surplus or scarcity hence influence price. Fluctuations

in one or the other is expected due to the availability of resources some of which are affected by

climate change: the change in the usual weather pattern or drastic weather conditions which may

affect production. For instance, conditions such as frosts or draughts may wipe out the entire

harvest, and hence lead to radical increases in the price levels and stabilizes the prices

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unpredictably. Altogether, such characteristics ensure that the exchange of fruits and vegetables

is rather multifaceted and vulnerable to changes in policies or the state of environment. All the

stakeholders including the producers, exporters and the policy makers are faced with a number of

hurdles that they have to surmount include the balance of trade policies that they have to

exercise, the international standards that they need to meet and the strategies needed to cope with

the effects of climate change on agricultural productivity. Awareness of these problems is vital to

the continued solidity and consecution of fresh fruits and vegetables markets all over the world.

4.3 Grains and Oilseeds (e.g., Corn, Soybeans)

Corn and soybeans are basic yearly food items that are involved in food chains and

commercialization of agricultural products, and are important in food security besides being used

by the animal feed industries globally. Market conditions of these goods are very sensitive to

subsidies, export restraints and bio fuels requirements all of which impact the market of final

goods tremendously. Many developed countries, including the USA and Brazil, fund their

domestic farmers by affording them subsidies in the market that rule global market prices and

give unfavorable advantages. These subsidies tend to attract so much attention when countries

debate over the equity and effectiveness of these financial incentives in the circuit of commerce

(Moore & Zanardi, 2011). Market fluctuations are made worse by export restrictions that are

placed by governments as they seek to safeguard local stocks during scarcity. Measures such as

these can distort international flow of goods and services thus experiencing a scarcity of the

goods and services in the importing nation with high prices to pay. Moreover, biofuel mandates

or regulations which require that a certain percentage of biofuels needs to be included in the

conventional fuel also effect the requirement for grains and oilseed to high degrees, these

mandates may well push up the costs of crops such as corn and soybeans that are used in both

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food and in fuel. Since changes in grain and oilseeds prices impact the global food prices, the

international community and specifically the developing nations that source most of its food

supply from the international market will be gravely affected. This means that policies

formulated by governments of states have direct impacts on agriculture in light of globalization

because changes in one country can affect agriculture internationally. A common conflict

involving major exporters includes subsidies and market access and this forms an additional

layer of the puzzle in agricultural trade. Knowledge of these dynamics is vital as it forms

foundation for anyone in policy makers, producers and trader to understand markets in grains

and oilseeds, this was a crucial fact in the promotion of the requirements for the stability of food

security chains and economic stability on an international basis including the adequate

management of international trade policies and cooperation.

4.4 Meat and Livestock (e.g., Beef, Poultry)

Meats such as beef and poultry together with livestock are sources of protein and are among the

most vital agricultural products imports and exports. Thus, the trade in meat products is tightly

regulated by sanitary and phytosanitary measures, tariff rates, export subsidies, and many others

that are important in the context of the current world trade. The technical barriers concerning

sanitary and phytosanitary measures are concerned with food safety and animal health and are

one of the primary sources of conflict because of the variation in the measures put in place by

different countries. For example, you may find a disparity with regards to the treatment of

animals and the ways in which meats are processed in different countries and due to differences

in standards, the importing country may not accept products that are not up to standard (Neven

and Vandenbussche, 2005). Tariff rates and quotas also affect the international flow of meat in

the global markets, high tariffs escalate the cost of imported meat products and reduces the

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opportunities of the products to compete with domestically produced meat products while the

tariff quotas tend to prescribe the volume of meat that may be imported at the lower tariffs hence

restricting marketing access. Measures provided in the form of export subsidies by the major

meat exporting countries such as EU, USA and Brazil also have an influence on the

competitiveness. These subsidies are intended to promote local businesses through cost subsidies

of exports but present dangers to the global market being unfair. Trade issues frequently lead to

trade wars since the countries are forced to balance the interests of protecting the national

industries, compromising on the quality of foods produced, and upholding international trade

laws and rules. For instance, variations in the health regulations including those regarding

hormone-treated beef or genetically modified feed make trade talks and law suits drag on for

long. These factors are more evident for the EU, US and Brazil since these are largest exporters

that compete in foreign markets while being subjected to pressures, knowledgeable about these

regulations and economics is useful and essential in decision making to the stakeholders in the

meat and livestock industries. Such awareness enables the policymakers, producers, and traders

to manage their activities so as to meet the set international standards and trade policies relating

to their operations hence ensuring competitiveness in the global market. These issues can only be

solved through the international cooperation and by following the principles set by the WTO in

order to have an efficient, fair and sustainable trade in meat and livestock products.

4.5 Processed Foods and Beverages

There are literally thousands of products that are classified under the broad category of processed

foods and drinks; they include products that are ready packed foods and drinks and other

products such as confectionaries. This sector can be considered as moderately sensitive and its

changes are largely dependent on brand attraction and customer Evaluate the effectiveness of the

P a g e | 23

chosen tactics by the companies of this sector. The issues playing the role of carrying the

Industry trade in this sector includes intellectual property rights and the regulatory policies with

regard to the contents of labels on the products such as foods (Niblett, 2013). The geographical

indication (GI) is one of the most often-discussed subjects under the discussion of trade

liberalization; this is essentially getting a name that defines the products coming from the

specific geographic region produced through established methods. Thus, sharing the role of

protecting regional specialties like Champagne from France or Parmesan cheese from Italy, GIs

apply pressure on home country’s producers to maintain quality and originality of the products.

CI and GI are especially important to EU and Japan since they use geographical indications that

help to enforce strict measures regarding the market availability and consumers’ choices within

the international trade bracket (Niblett, 2013). Therefore, disputing leads to trade issues, which

occur mostly as a result of non-GI using producers employing these protected names in reference

to related products. Such controversies can be related to issues of trade and access to markets

since to access these markets certain nation has to meet certain regulatory measures to comply

with the GI laws. The second aspect is also rather significant, namely, information on foods and

their nutritional values, as well as the list of ingredients, may vary between countries; thus, it can

be seen as a system of trade barriers. The above means that producers must package and market

their products while at the same time meeting different standards; this is costly and time-

consuming. Another rivalry category that seems to stand out is brand rivalry in the processed

foods and beverages, especially because the firms incur a lot of costs on advertising and research

and development to safeguard the brand. Conflicts in names and logos of the products that are in

trade and their shields also escalate trade in extra markets as those that adhere to IP standards.

Two matters deserve attention when examined within the scope of the researched industry;

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consumed processed foods and beverages, such as the legal framework, and the intellectual

property rights. Notable issues that fall under this category include international standards and

trade agreements; thus, there is need to sensitize policymakers, producers and traders. The failure

to adhere to protective measures for GI and the labeling requirements becomes a competitor to

have to survive in the market and have reasonable competition on the international market of

processed foods and beverages.

5. POLITICAL ECONOMY OF TRADE REMEDIES

5.1 Interest Groups and Lobbying in Agriculture

Agricultural trade policies all over the world continue to be influenced by interest groups and

lobbying through putting pressure on governments to make appropriate decisions on subsidies,

tariffs and trade agreements, agricultural industries in several countries are highly prepared with

lobbying that is geared towards ensuring that necessary policies are supported. In the case of the

United States, pro- farming large interest groups like the Farm Bureau Federation lobby for

friendliness to domestic farmers through subsidization and trade measures such as antidumping

(Reynolds, 2013). These groups press so much to have their objectives incorporated in the

agricultural policies of their country, and this has seen most of the farmers in America being

subsidized and protected. Likewise in the European Union, producers’ associations exist to

campaign for funding under the Common Agricultural Policy (CAP). The CAP comprises

various instruments such as subsidies and market interventions aimed at stabilizing farmers’

income and price as requested by lobbing groups are varied from dairy farmers, grain farmers,

cattle farmers and many other subsectors in the agricultural industry (Rodrik, 2018), they

showcase the levels of self-serving in the agricultural segment, and TASK, which affect trade

negotiations’ dynamics. To explain, while dairy farmers want higher tariffs, grain farmers may

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desire export subsidies so as to improve their position when competing internationally. These

tensions can make markets of trade both internally and externally challenging since the leaders of

different countries have to address the needs of diverse involved agricultural industry players.

Interest groups do not only affect various domestic policies, but they also actively engage in

making and shaping international trade policies to make them suitable to their members, this

usually includes putting pressure into the making of certain provisions favorable to domestic

agriculture or in the removing of provisions unfriendly to the interests of domestic agriculture.

Summing up the discussion, it can be stated that interest group attacks and lobbying activities

related to agricultural trade policy are a highly significant process that defines the modern

agricultural environment as well as the strategic orientations of different subsectors of agriculture

with reference to the conflict of interest and cooperation between them.

5.2 Domestic Politics and International Trade Relations

National politics play a major role in the regulation of trade in agriculture in the international

markets as countries aim at promoting the interests of their domestic farming industries

alongside their general economic and foreign policies. In nations such as India, politics of

agriculture are therefore dominated by such factors as food security and rural growth. This

sometimes leads to policies like high tariff walls on imported foods to protect the dependence

farmer and have a guarantee of food supply (Rickard, 2012). These protectionisms are important

for the sustaining of the rural incomes and political order because the stagnated population relies

on agriculture. On the other hand, the developed country such as United States and members of

European Union, have a number of economic and political strings attached to influence from big

agriculture and consumerism groups. Farm groups advocate for what is referred to as

protectionism in which domestic farmers are spared from competition by the use of subsidies,

P a g e | 26

tariffs and other tools of self-protection. At the same time, consumer organizations demand

cheaper foods and wider access to a range of products, which, for instance, can be received

through the policies of free trade (Rodrik, 2018). Such opposing pressures form a rather difficult

political context, which is characterized by the tensions between supporting domestic agriculture

and consumers. These domestic political processes tend to provoke trade disagreements and

increase the bargaining activities in the WTO or any other global trade organization. These

forums are entered by countries to solve trade disputes emerging from their domestic trade

policies in an attempt to harmonize between what serves their domestic interests and regional

and international trade law. For example, the WTO has functions that deal with the settlement of

certain disputes involving subsidies, tariffs and other forms of trade barriers where countries are

able to get the best shots to provide for their domestic constituencies yet remain within the trade

laws. Therefore, the relationship between political structures at home and the governance of

international trade in agricultural products is well understood. Local agricultural policies and

multilateral commerce and obligations suggest an unceasing process of balancing within

domestic and international policies of trade in agriculture.

5.3 Developing vs. Developed Country Perspectives

The stances that developing and developed countries take in agricultural trade liberalization are,

therefore, markedly different. Exporting developing countries, therefore, wish to have more

market access into the developed markets for the agriculturally produced exports they desire as

well as protection for their agricultural industries from the Amendment’s subsidized imports

(Rodrik, 2018). They claim that developed countries’ subsidies as well as non-tariff trade barriers

skew global markets, and since developing country farmers lack such support, then it’s unfair;

Orden et al, 2011. These countries demand that these subsidies and barriers should be removed

P a g e | 27

or reduced for their exports to have a level playing ground when competing with those countries

subsidized products. On the other hand, the developed countries focus more on food safety

measures and protection of intellectual property rights which acts as hindrance to products from

the developing nations (Rigod, 2015). Such standards commonly embrace issues such as

pesticide residue, food additive and labeling standards, which are standards that most of the

developing countries would not be in a position to meet because of inadequacy of resources and

or lack of advanced technology in observing the standards. Also important is the intellectual

property rights concerning seeds and biotechnology since developed countries want to safeguard

their creation and investments made on the advancements in the agriculture sector. It is hence

important to overcome these barriers in order to ensure that trade relations are favorable as

possible so as to warrant development of trade, food security and the third world countries for

example. In an attempt to harmonize these views, usual strategies are developed so as to reach a

compromise that will benefit both parties. For example, countries could accept certain cuts in

particular subsidy forms and contribute technical expertise in order to assist minimum

requirements in terms of the safety of food imports to be met in the Third World. Thus,

developing countries could commit to staged liberalization where they can easily adapt and

adjust. Obtaining such compromises calls for strong multilateral structures and bargaining,

which, in most cases, is done by WTO and other similar bodies. These negotiations focus on

establishing fair conditions that would enable both developed and developing countries to

receive positive outcomes as far as trade in agriculture is concerned, hence making a positive

impact on food security on the globe and subsequently in the economic development.

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5.4 Regional Trade Agreements and Trade Remedies

Many RTAs affect agricultural trade by determining trade remedies and market access conditions

of the commodities exchanged between members. They also entail provisions on tariffs, quotas,

and sanitary standards that takes into consideration regional conditions that define agriculture as

well as the political decency in signing the agreements (Schaffer, Nedumpara, & Saha, 2015).

For instance, the CPTPP has got special chapters that focus on the agricultural trade and include

elements such as tariff schedules to be eliminated and sanitary measures which are aimed at

liberalizing the regional trade within the countries that are members of this agreement (Rodrik,

2018). These are usually meant to open market fronts and ease the barriers to trade with the aim

of creating a more interlinked regional market for horticultural crops. However, RTAs also bring

disorder in the government of the international trade since they have their standards on the trade

that are unique and different from the ones set by the multilaterals such as WTO. The president

of this division warned that this fragmentation can result in trade conflict and protectionism due

to differences in the standards set in different nations. However, the undeniable fact of the co-

existence of several RTAs with different rules hinders the attempts aimed at the formation of a

balanced and logical policy in the sphere of international trade. For example, while the CPTPP

encourages things like tariff liberalization, enabling the easier passage of sanitary measures for

its members, these may not be exactly the same provisions that are set out by WTO. They can

cause shifts as a result of trade which affect the RTA’s ability to source from third parties hence

causing tension especially where the third party feels locked out by the advantageous position of

the members of the RTA. The actual provisions of agriculture in RTAs can sometimes cause

protectionism to protect industries in the region against regional competitors, which contributes

to the development of foreign trade in various ways. Additionally, RTAs frequently incorporate

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regional agricultural factors and possibly political claims that can be significantly different. Such

provisions where the standards are aligned more towards the region, can also prejudice the

differences with international practices. This discord requires prudence for countries engaged in

many FTA agreements since they are bound by the various sets of rules and standards. Although

RTAs have the role of boosting the opportunity for cooperation and market access in agriculture

trade, they also complicate the global trade regulation system.

5.5 Reform Proposals and Alternatives

Efforts towards transforming agricultural trade policies in an effort to deal with the emerging

problems of the global food supply, security and markets are still sensitive. Some of the

suggestions have included: cutting of trade-distorting subsidies; developing of a framework for

SPS measures and strengthening of trade related facets of transparency (Niblett, 2013). The

objective of such reforms is to build the new world trading order conducive to development and

based on fair competition. Poor countries especially require a change in trading rules to support

their development, promotion that markets are balanced and that trade distorting subsidies

especially for export crops are slashed. They want places where they can easily sell their

agricultural produce and reasonable technical support so as to conform to the international

market. On the other hand, developed countries seek to keep policy freedom of domestic support

programs and enforcing the rights of inventions, so that the agricultures of the developed

countries remain competitive (Rodrik, 2018). Other frameworks, including regional integration

of food security and transfer of technology can also be considered as the viable mechanism to

solve the problems of agricultural trade and inequality. Differentiation can promote food security

at this level because this helps to combine resources, technologies and improve the necessary

infrastructures to free the region from dependence on external markets and protect it from the

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disruption of global supply chains. Various forms of technology transfer from developed to

developing countries can go a long way in increasing the agricultural productivity and

sustainability and hence help in reducing the gap in the agriculture capabilities, these reform

proposals impose a challenge of achieving a consensus of different stakeholders such as

government, international organizations, industries and the civil society. International relations

especially, in the matter of trade require leadership to balance the self-serving behaviors and

cement cooperation for mutual gains. This entails the use of diplomacy as well as decisive

approach, policy statement coupled with demonstrable dedication in terms of openness,

participation, and negotiation. The ultimate aim is to build a new world order of agricultural

trade liberalization that contributes to sustainable development, effective implementation of food

security policies to favor credit worthy and decent market access for all the nations in order to

create a new world order of economic transformation.

6. EMERGING ISSUES AND FUTURE CHALLENGES

6.1 Environmental considerations and carbon border adjustments

As for global warming issues, environmental considerations are gradually playing a critical role

in trade policy of agricultural commodities particularly regarding CBAs. These adjustments seek

to make it fair by extending such tariffs on imports with a view of compensating the extra

emissions they inflict on other countries, it aims at eliminating carbon leakage, that is the

transferring of industries to countries that have more relaxed policies on emission of greenhouse

gases thus counteracting global efforts towards reduction of emissions. CBAs also work well

since they impose tariffs equivalent to the level of carbon emissions in the products imported

into developed countries, hence encouraging exporters to reduce their emissions to allow them to

sell their products to countries that use CBAs. CBAs ensure compliance to environmental

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standards globally by supporting the use of green technologies and decreasing the relative gain

advantage of non-compliant nations, it prevents the countries that make serious attempts to lower

the carbon emissions from being put at an economic disadvantage compared to the rest. CBAs

contribute to Australia’s move towards a low-carbon economy by moving environmental costs to

trade policies, improving sustainable agriculture practices, and boosting international

cooperation on climate change.

6.2 Digital trade and e-commerce in agriculture

Digitalization in agriculture has impacted trade features through manner such as eCommerce and

digital trade, selling of agricultural products through the online platforms help farmers to access

other markets, sell directly to the consumers and get better prices, hence eliminating the

intermediaries. Accounts are free from the inconveniences of using cash, are more efficient,

accelerate the process of payment, and increase financial outreach for farmers in the rural areas.

Also, the precision agriculture is the data enables farming, this involves use of sensors, drones

and analytic techniques hence more efficient resource exploitation and increased production.

Though for digital trade in agriculture to reach its greatest potential, sound policies and proper

agreements are mandatory. These should handle issues like data privacy, cybersecurity as well as

issues to do with standardization of installation of digital systems. Preserving the rights of

farmers and guarding their personal information, and shield from probable cybercrimes that may

inconvenience operation in the farmland. Globalization of laws also assists in having easier

facilitation of business transactions in the digital platform and global exports. If these factors are

well addressed, the dissemination of the information through the digital technologies would go a

long way in increasing the trade in agriculture and the sustainability of the farming business

ensuring food security in the world.

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6.3 Non-Market economies and state-owned enterprises

The global agricultural trade is confronted with issues, which mainly concern issues of fair

competition and market distortions, arising from the participation of non-market economies and

Australia State-Owned Enterprises (SOEs). This often include unfair business strategies like

dumping where through subsidies their agricultural produce is sold at lower prices in the

international market than the production cost. This distorts global trade relations by beating the

market prices and placing producers from the market-based economies who do not get the

subsidies in a disadvantageous position. Besides, SOEs have a significant resemblance to State-

controlled or State-owned companies that do not always disclose information that is adequate to

evaluate their total cost and positive aspects, solving these issues means having qualitative rules

of trade that will allow equal conditions for all players. Some of these rules should comprise

measures for regulating and supervising the compliance with the principles of fair competition,

information disclosure rules applicable to SOEs and measures against cross subsidies. National

and international laws, and institutions including the World Trade Organization (WTO) act as a

guide in development of these rules, they give structures to apply in cases of disagreements and

in bargaining in a bid to enhance justice in international relations on trade in agricultural

produce. Additionally, there is a need to increase the transparency and accountability of SOEs in

terms of their operations to be able examine their influence in the market with regards to

competition fairly. This may include disclosure standards for financial and other operational

information; procedures for the external check of compliance with the provisions of trade

measures. To do this the various problems facing the agricultural trade can be solved through the

formulation of sound and well supported rules on the trade to enable all participating countries

offer a sustenance for a fairly competitive trade for the improvement of the market economy.

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6.4 Food security and trade remedies

Issues relating to food security act as major prerequisites in determining the application of trade

remedies such as tariffs, quotas and export restrictions in the agricultural trade policies, these

measures are applied to maintain food prices stable in internal markets to shield national

producers from changes on world markets and assure food supply during emergencies or deficit.

It sometimes controls both the quantity and the price of food products that can be imported

leading to a situation where domestic producers are able to carry on with their operations. On the

other hand, the export controls seek to ensure adequate food within a given nation by advocating

against the exportation of goods and tomatoes considered of utmost importance when there is

scarcity and or during an emergency. It is therefore important to work out food security priorities

alongside operation of the trade regime effectively in the manner of addressing food insecurity

status of the world without distorting trade. Despite what trade remedies are a prerequisite for the

protection of domestic production and food availability, they should be implemented sparingly to

maintain global trade or else imposed at the expense of the food-importing nations that fully

depend on imports to feed their population. Rules on these measures are contained in

international trade law under bodies like WTO which offers benchmarks on how the measures

can be entered into and implemented to avoid being a veil for protectionism while being a

genuine attempt to address food security issues a country may be facing. The principles that were

postulated include transparency, predictability, and consultation with trading partners in order to

lessen adverse effects of trade remedies on international food trade. That means countries should

undertake actions that are only temporary and are directed towards the problems which threaten

food security in those countries and encourages fair trade. That way the countries help the

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domestic agriculture industries, feed their population, help other countries in a way that creates a

stable and fair trade so that all countries benefit.

6.5 Post-pandemic agricultural trade policies

The COVID-19 pandemic has affected export and import policies of agricultural production and

trade differently due to change and disruption on the global value chains. Governments and

international organizations have tweaked policies to avoid disruptions, provide access to food,

and enhance food security in agricultural trade. The short-term actions entailed working to

ensure the continuity of essential goods’ supplies which include food and agricultural products

despite arising transport difficulties as well as closed borders. These efforts involved trying to

stabilize markets, ensure that there were no shortages of food and to support farmers during

turbulent periods of volatility in both, demand and supply. Focusing on the future, post-COVID

plans pinpoint the improvement of the agricultural exports’ supply chain, the expansion of digital

tools, and the promotion of sustainability to create stronger frameworks. Mitigating supply chain

vulnerabilities entails globalization, constructing more stocks and adopting better transport

systems in order to cut the dependency on a particular supplier and have greater capacity in the

event of future setbacks, it is significant in supporting remote working, online market places for

buying and selling agriculture goods and effective use of data for the efficient supply chain

management. Furthermore, climate change smart agriculture together with environmental

management and sustainable resources utilization receives consideration more today in order to

support food security, minimize its future affects in addition to meeting clients’ changing tastes

and preferences for green products. The nature of the COVID-19 pandemic response has shown

that policies and rules related to agricultural trade need to be adaptable, integrated with other

sectors, and proactive, as the current global food systems have been exposed as highly vulnerable

P a g e | 35

to crises. Thus, by including these strategies, the countries will be in a better position to deal with

future disruptions and thus foster sound and sustainable development of the global food systems

as well as food security.

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