ABSTRACT
Hunger and poverty reduction in developing countries is largely determined by their economic growth. Due to globalization, economic growth in developing countries is significantly affected by the international economic and global trading environment, while the international environment is essentially decided by the economic and trading policies of the major developed countries. Major developed countries are able to exert significant influence over the world market for agricultural commodities and global hunger reduction as well. Developed countries affect agricultural trade not only through their trade policies, but also through their domestic agricultural policies. To establish a more liberal trading system for agricultural commodities, and thereby reduce world hunger, it is important to understand what domestic agricultural policies was implemented by the major developed countries, what impact these policies have on domestic agriculture, and how they have distorted international agricultural trade. The European Union and the United States are the two major dominants in international agricultural trade. This chapter examines their agricultural policies.
