Policies, Regulations and Trade

Policies and regulations which impact trade and the flow of food have a significant effect on the distribution, timing, and quality of traded agricultural and food products and prices faced by farmers, as well as the availability and affordability of food in importing countries.  Establishing the scientific basis for cost-effective food safety and quality standards has become an important determinant of the flow of products and the available food supply in countries in all regions.  Global markets trading at world prices allow areas producing increasingly resilient crops to offset the risks of food shortages and food insecurity and mitigate the shocks of crop failures through trade.  Risk management strategies based on weather and commodity derivatives and reliance on using world markets to hedge against risk of shortages are becoming key components of effective national and regional policies to assure a secure food supply and absorb local shocks.