Trade Policies Worsen Global Food Prices, Hurt Vulnerable Nations
During the high agricultural prices between 2007-2008, many countries changed their trade policies to manage the impact. These changes affected global food prices. By using computer models, researchers estimated how these actions influenced the prices and trade of key agricultural products like rice, wheat, and barley. They found that the policies increased prices for all these products, with rice being the most affected at 24%, followed by wheat (14%) and barley (9%). Countries with less trade power experienced higher price rises, while developing nations without intervention suffered welfare losses due to actions of major trading nations.