Tariffs

Food needs to find its way from producer to consumer. But inadequate policies, institutions, and rural infrastructure can result in agricultural markets that do not function efficiently. How can countries best develop markets, institutions, and infrastructure in ways that contribute to agricultural growth, help alleviate poverty, and ensure food security for all?

The cost of international trade is an important factor determining local market conditions. A country may apply tariffs to imported products as a means of income and to provide a level of protection for domestic producers, but tariffs, varying by product type, also add to the costs of trade and can prevent markets from reaching full efficiency. Many countries have entered into free trade arrangements in which tariffs on specified imports are reduced to zero.