ABSTRACT
Robert Thompson explores the role trade can play in the achievement of food security goals for less-developed countries (LDCs). He comes through as a strong believer in the real gains from trade-oriented policies for developing countries. A principal reason for protection in developed countries has been to prevent changes in income distribution that would have taken place as a result of market forces. This chapter discusses issues related to the trade regime and agricultural development and brief remarks on food security issues. The implicit taxation of exportables and import-competing activities in agriculture results from the indirect effects of a booming non-agricultural export sector and industrial protection. The oldest trade intervention in most LDCs, export taxes continue to be important in countries with a thin tax base, as the collection costs of alternative taxes is disproportionately high. Trade can help stabilize aggregate supplies, particularly in urban areas where food insecurity is usually associated with fluctuations in food supply.
