Miller Magazine Issue 146 February 2022

77 ARTICLE MILLER / FEBRUARY 2022 tion, and digital technologies resulting in lower trade costs, with positive effects of economic growth and its distribution both in developed and developing countries. Improved market access due to reduction in tariffs, resulting from the World Trade Organiza- tion’s Agreement on Agriculture (AoA) that entered into force in January 1995 and the many Regional Trade Agreements has also been instrumental in promoting trade in food and agriculture (FAO, 2020). While it continued to expand since 1990, world agri- food trade grew at a slower pace (3.7 percent annual- ly) than the global merchandise trade, which grew at an annual average rate of 4.4 percent. Consequently, its share in the global total merchandise exports has declined, from close to 9.5 percent in 1990 to around 7.7 percent in 2019. For example, the least-developed countries’ (LDCs) share of agricultural exports in their total merchandise exports declined from 22 to 11 per- cent, while their share of agricultural imports in their total merchandise imports dropped from 52 to nearly 31 percent over the same period. The decline in the share of agriculture exports in total merchandise ex- ports suggests an increase in the export earnings of LDCs from sources other than agricultural products. Developing countries are increasingly participating in global agri-food markets. Their share in the global agri-food exports increased from 32 percent in 1990 to 46 percent in 2019, while that of developed coun- tries declined from 68 to 54 percent. Over the same period, developed countries’ share in global agrifood imports declined from 67 to 49 percent, while devel- oping countries increased their respective shares from 33 to 51 percent. Several countries, namely Ar- gentina, Brazil, China, Chile, India, Indonesia, Malay- sia, Mexico, Turkey, South Africa and Thailand, have been at the forefront of this pattern shift (FAO, 2018). Despite the significant expansion in the share of developing countries in global agri-food trade, LDCs participation continues to be limited. The shares of LDCs in global agri-food export and import were 1.5 and 5.3 percent in 2019, respectively. Moreover, as population growth outpaced gains in agricultural pro- ductivity, thus increasing the demand for imported food, most LDCs have changed from being net ag- ricultural exporters to net agricultural importers. Ag- riculture is central to LDCs, accounting for between 30 and 60 percent of GDP, providing employment for more people than any other economic sector and un- derpinning their food security and export earnings. However, poor infrastructure, limited adoption of technologies, lack of access to inputs and financial resources, and weak institutions are the key factors limiting LDCs’ agricultural productivity growth and competitiveness in global markets (FAO, 2018). ACTIONS TO ADDRESS KEY CHALLENGES: • Contribute to countries’ informed decisions on agri-food trade and related matters through im- proved understanding of the trends and drivers of global agrifood markets, primarily by strengthening human capital and institutions; • Support developing countries, in particular LDCs, to enhance agricultural productivity and access to markets through public and private investments in market and trade-related infrastructure and im- proved access to quality inputs, information and communication technologies (ICTs) and financial re- sources; • Facilitate increased participation of developing countries, in particular LDCs, in international agri- food markets to achieve SDG target 17.11 aiming at significantly increasing the exports of developing countries. Poonyth, D. 2021. Changing patterns of agrifood trade: the rising importance of developing countries. Trade policy briefs, no. 48. Rome. https://doi.org/10.4060/cb7272en