World Agricultural Trade Faces Challenges on Some Fronts

BRUSSELS, BELGIUM – Trade in agricultural products has been more resilient than overall trade, according to a new report from the World Trade Organization (WTO). This reflects the essential nature of food and the resulting relative income-inelasticity of demand for it, as well as the fact that most agricultural trade (notably cereals and oilseeds) takes place in bulk marine shipments that have not been subject to major disruptions. While overall merchandise trade fell sharply in the first half of 2020, agricultural and food exports increased by 2.5 percent during the first quarter of the year compared to the same period in 2019, with an increase of 3.3 percent in March, followed by a slight increase in April. Impacts have varied across regions as Asia saw its agricultural exports decline in March, followed by Europe and North America in April. Some regions, however, have seen exports increase year over year, mainly in South America, driven by Asian demand for soybeans, sugar and meat.
(SOURCE: World Trade Organization)