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Topic 8

Peculiarities of agricultural markets and international trade with


agricultural products
OBJECTIVES
1. Market food products - features and trends
2. Characteristics of the world market for food products
3. Organisms and international organizations governing the global market for food products
Market food products in recent decades, is characterized by a number of traits and tendencies that mark
on activities of producers, consumers, competition and distribution of the sector worldwide:
Agri-food sector provide consumers with increasingly more "prestigious" easier to prepare, more stable,
well preserved and very varied.
The agri-food sector as all other sectors, the principle of profit growth, but can not ignore aspirations for
healthy food.
2. Food policies in industrialized countries were often imposed on public authorities by producers and
traders in the agriculture and agribusiness.
An important role in shaping policies they have food and public bodies and consumer associations.
3. Public information campaigns contribute to influencing consumption patterns, which is another
characteristic form of food policy for industrialized countries.
Examples:
- Decrease in consumption of beef and increased consumption of meat, fish and poultry (meat less fat
than beef);
Egg drop in consumption due to its high cholesterol etc.
4. Over consumption of fat, animal protein, sugar and salt, insufficient dietary fiber consumption are
features of the industrialized world.
In Europe today, a large proportion of mortality cases are related to diets.
However, but the, food policies have not targeted until recently, in an explicit and specific, changing diets
in order to decrease the frequency of civilization diseases: diabetes, obesity, cardiovascular diseases, and
various cancers.
The characteristics of world market
1. Deepening of regional economic integration
2. Unprecedented growth of the service economy
3. Strong computerization of all areas of activity He made to speak for the first time in the US the
existence of a quaternary sector: the international economy
4. Industrial concentration, the demographic explosion, accelerate technology transfer has forced
economists to consider, increasingly more, the concept of "geo-economics"
5. Affirmation of transnational corporations as an engine of growth and as agents of development
integrators
6. The growing importance of market forces
7. Highlighting the new natural resources
8. Development of economic thinking and culture, spirituality modern world development, access to
education and putting in the foreground the moral values of the younger generation have led to evolving
consumer tastes sharper and also to improve living standards
The analysis of international trade in food products in the postwar era occasions the breaking away of the
specific features and trends of this period:
a) In the run of the Second World War this group of commodities ranks was first in the world trade; in the
postwar period its share value decreased continues;
b) The growth of world trade in food has been relatively low, sometimes negative
c) Agriculture in capitalist countries affected by the Second World War was restored in a relatively short
time and then registered continuously developing as a result of increased self-sufficiency degree in
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agricultural products from own production, along with a gradual reduction in imports of food products,
especially products produced in large quantities in their agriculture sector.
d) Another feature of world trade in agricultural products is the gradual reduction of food exports from
developing certain states:
increasing the domestic consumption due to rising living standards of the population in these countries
as a result of population growth in these countries and the aftermath of their political independence;
Countries whose agriculture was targeted in the past by the former metropolis on the line monoculture
took measures for the gradually elimination of this unilateral specialization;
Appearance of a new industrialized countries that have an important role in world trade in food
products.
e) Evolution of the share value of agro-food products has been and will continue to be influenced by price
dynamics in these products
f) The weight of a group of food products is influenced, to some extent, the renewal of strategic stocks of
food, the stocks that constitute approximately all countries, according to FAO recommendations
g) Another feature of world trade in agricultural products is that world trade is dominated by the group of
developed countries followed the group from developing countries
h) After World War II, along with the changes that have occurred in the geographical distribution of
international trade in food products, changes occurred in streams (fluxes) of goods, mainly driven by:
- Deepening of the global division of labor;
- Intensifying the process of industrialization in a growing number of developing countries;
- Economic integration processes in different regions of the world;
- Trade policy carried out by the developed capitalist states, the bloc of socialist countries forming etc.
i) Increase revenues for important segments of consumers caused changes in the structure of imports and
exports of agro commodities
Bodies and international organizations governing the global market for food products
a) The organization UN Food and Agriculture Organization (FAO)
It is the largest autonomous agency Food and Agriculture Organization of the UN, with 174 member
countries. It was founded in 1945 with the main objective: increased living standards in food improving
nutrition improving agricultural productivity and living standards of the rural population
b) The World Health Organization (WHO)
It was founded in 1948 as a specialized agency of the UN
WHO has the fundamental goal "that lead people to the highest level of health" based on the principle that
"Hunger and malnutrition are unacceptable in a world that has both the conditions and resources to end
this human catastrophe of.
Globally there is enough food for all; the main problem is unequal access to it. "
c) Joint Meeting of the FAO / WHO pesticide chemical residue nature (JMPR)
It was founded in 1963 following the judgment of the FAO Conference, which the Codex Alimentarius
Commission is obliged to recommend maximum residue limits (MRLs) for pesticides and contaminants
of the environment that may be present in food limits that can guarantee the safety of their effect on the
health of man.
JMPR recommended methods of investigation and sampling to analyze these parameters. Its members are
prominent scientists, independent experts, experts in pesticides, chemical contaminants of environment
etc.
d) The Joint Committee FAO / WHO Food Additives issue (JECFA)
It was founded in 1955 in order to examine issues, toxicological and other aspects of contaminants and
veterinary residues in food are embedded.
JECFA is independent of Codex Alimentarius Commission, providing the Commission and other bodies
Codex competent advice on aspects of its work. Its members are independent scholars, experts in the field
of additives, contaminants and residues of veterinary.
e) United Nations Development Programme (UNDP)
It is the main UN body specialized legal aid, and financial support in development.
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Fundamental programs (main) destined for countries in which lives up to over 90% of the poorest people
of the world. UNDP is known as "a development agency of developing countries".
It supports governments to improve their national policies in order to create the necessary institutional
infrastructure development and basic services in order to reduce poverty.
f) The World Bank
World Bank Mission is mainly that to reduce as far as possible, poverty and malnutrition in all countries,
and raising living standards in developing countries for development, while encouraging and supporting
the implementation of the concept of sustainable development and protection environment.
g) The International Political Council for Agricultural Products and Trade
It was founded in 1987 as an independent group of authoritative leaders from 20 countries in developed
and developing countries, which have rich experience in agriculture, agribusiness, coming either from
governmental structures or from academic.
This council aims to develop and spread economic policies that support an efficient and open global food
system, so that world production to satisfy consumer requirements entirely.
IPC directly transmit its recommendations to the institutions concerned and publishes a variety of articles,
studies and researches that concern the fields of agriculture, food products and trade in such products.
h) FAO WHO Codex Alimentarius Commission
Created in 1962 and is under the patronage FAO-WHO double. Its secretariat is located in the Division
for Policy and Nutrition FAO.
The Codex Alimentarius Commission has its own statute and rules of operation are included in the
Manual of Procedure of the Commission.
Codex Alimentarius is a collection of international food standards adopted and presented in a uniform
manner laid down to protect consumer health and ensure loyalty in trade in food items.
i)
International Seed Testing Association
It has the primary mission to develop, adopt and publish procedures and required standards for sampling
and testing seeds and seedlings used in agriculture.
This international association contributes to the consistent application of these procedures and rules, and
also monitor and supervise "seed movement" in the area of international trade.
j) International Laboratory Cooperation in the field of Accreditation
It is the main international forum that develops global laboratory methods and procedures for
accreditation promotes laboratory accreditation as a tool to facilitate trade in agricultural products,
aassists accreditation systems in economic development.
ILCA also provides advice and assistance to countries that are in the process of issuing its own laboratory
accreditation systems.
k) General Agreement on Tariffs and Trade (GATT)
It was signed in Geneva on 30 October 1947 by 23 states, under provisional application of the Protocol
with effect from January 1, 1948.
GATT had no legal status as an international organization, so the UN could not be subordinate. This was
one of the main motivations of its transformation into the World Trade Organization, from 1 January
1995.
l) World Trade Organization
Founded in 1995, the only international organization with a permanent nature which aims to create the
necessary legal framework liberalizing trade in goods, services and intellectual property rights, and to
supervise while the implementation of provisions related to rules, disciplines and trade practices agreed .
WTO is established as an independent organization outside the UN system.
WTO agreements are contractual in nature (mandatory), participants benefit arising directly from strict
compliance obligations.
The value of exported and imported goods shall be based on actual prices FOB for exports and CIF
imports actual prices.
Price FOB (Free on Board) represents price at the exporting country include:
- The value of goods
- All costs to the point of embarkation and
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- All fees paid for the goods to be loaded on board.


CIF (Cost, Insurance, Freight) represents price at the importing country, comprising
- both the components of FOB price
- as well as international transport and insurance costs.
In international trade are not included:
goods in transit
goods temporarily admitted / taken out / in the country (except for work)
goods purchased by international organizations for their own uses in national countries
goods for and after repairs and related spare parts
The coverage
For intra-EU trade include:
- Exports of goods from one EU country to another EU destination and
- Introduction (entries) of goods in one EU country with the country of dispatch another EU
Member State.
For EXTRA-EU trade includes exchanges of goods between EU and non-EU country, covering:
- Direct import of goods for consumption,
- Imported goods taken out from customs warehouses or free zones to be released for
consumption,
- Exports of goods of national origin and
- Export of imported goods declared for domestic consumption.
Country Grouping
European Union (EU): Austria, Belgium, Bulgaria, Czech Republic, Cyprus, Croatia
Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, UK, Netherlands, Poland, Portugal Romania, Slovakia, Slovenia,
Spain, Sweden, Hungary.
NAFTA
Mercosur
European Free Trade Association (EFTA): Iceland, Norway, Switzerland, Lichtenstein.