In this Article
A joint report by the Organisation for Economic Co-operation and Development/Food and Agriculture Organization of the United Nations (OECD-FAO) emphasizes that trade is an integral component of global agrifood systems, facilitating food movement from surplus to deficit regions, enhancing food security, stabilizing prices, and promoting diet diversification.
Source: OECD
International agricultural trade plays a crucial role in balancing food deficits and surpluses across countries, stabilizing food prices and providing consumers worldwide with more diverse and nutritious food. It also enables stakeholders across the agricultural and food industries to participate in global markets and agrifood value chains, thereby increasing their capacity to produce, earn income, and purchase food. In addition, by enabling the efficient exchange of products from regions with optimal production capabilities to areas of need and supported by environmental provisions and standards that promote sustainable agricultural practices in trade agreements, agricultural trade can promote more sustainable use of land, water, and other natural resources, reducing pressure on local ecosystems and lowering the sector’s global carbon footprint.
However, the net impact of international agri-food trade on the environment is uncertain, as the relocation of production to regions with less stringent environmental standards and the transportation of agricultural goods over long distances can contribute to greater greenhouse gas emissions. Rising incomes and changing preferences in low- and middle-income countries are expected to increase livestock and fish consumption over the next decade, contributing significantly to greenhouse gas emissions. Trade can mitigate these impacts by reallocating production to efficient regions.
The current trading framework must evolve to ensure food security and improved nutrition for food-deficit populations, while also being environmentally sustainable, so that the benefits of trade do not come at the expense of the natural environment. Aligning trade with environmental and nutrition goals requires policies promoting open global food markets, national regulations, and sustainability standards.
Reference: OECD/FAO (2025), OECD-FAO Agricultural Outlook 2025-2034, Paris and Rome, https://doi.org/10.1787/601276cd-en.
