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Agricultural trade and employment: links, evidence and policy implications

FAO Trade Policy Briefs No. 32 Trade & Employment










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    Policy brief
    Trade and Related Policies for Decent Rural Employment 2016
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    The agriculture sector accounts for the vast majority of employment and output in most developing countries. Trade in agricultural products has the potential to significantly impact rural employment, incomes and poverty, by affecting the availability and price of food, as well as wages in this sector. To achieve positive growth and employment outcomes, development strategies should involve improved consideration of both agricultural trade policies and domestic agricultural policies. Moreover, a key consideration in designing the optimal policy package should be the level of development of a country’s agriculture sector, and the stage of structural transformation in an economy.
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    Brochure, flyer, fact-sheet
    Information Note #7: Agricultural Trade and Decent Rural Employment 2016
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    Given the significance of agriculture to rural livelihoods, agricultural trade has the potential to significantly impact rural employment and incomes. Agriculture is the largest employer of the world’s poor, most of whom live in rural areas. As developing economies grow, and undergo structural transformation, employment tends to shift away from agriculture into other sectors, such as industry or services. Along the path of structural transformation, agricultural trade can speed up shifts in econ omic activity from agriculture to other sectors, resulting in asymmetries between sectors in terms of output growth and incomes, thereby posing both risks and opportunities for decent rural employment in developing countries.
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    Policy brief
    Trends in inclusion of environmental related provisions linked to the agriculture, fisheries and forestry sectors in regional trade agreements 2023
    Agriculture, fisheries and forestry are closely linked to the environment and depend on it for their long-term productivity and sustainability. However, if not properly managed, these three sectors can have a negative impact on the environment. Agricultural trade can also have an impact on the environment, and in recent years there has been a renewed focus on how to balance sustainable development and trade liberalization. Since the establishment of the World Trade Organization (WTO), regional trade agreements (RTAs) have become a common option to liberalize trade and have grown significantly. RTAs have also expanded rapidly in terms of regulatory coverage, making direct reference to sustainable development and including provisions linking the environment to the agriculture, fisheries and forestry sectors. While the trend in the inclusion of environmental provisions related to agriculture, fisheries and forestry (or " Ag-ERPs") in RTAs has fluctuated somewhat since 1995, the average number of such provisions per agreement has increased steadily. This policy brief discusses the relationship between the agriculture, forestry and fisheries sectors, trade and the environment; presents the relevance of environment-related provisions in RTAs; assesses the evolution of Ag-ERPs in RTAs since 1995; shows the role of Ag-ERPs in mitigating the environmental impacts of trade-induced production growth; and introduces the discussion on whether the inclusion of Ag-ERPs in RTAs is the appropriate means to improve and extend the reach of different environmental practices globally.

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