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The main aim of this paper is to overview the trends in assistance to agriculture both in developed and developing countries and to compare them with trends in food products trade to verify the hypothesis assuming that although the level of price distorting assistance to agriculture in high-income countries in last three decades has been decreasing, agricultural markets in these economies are not becoming more open for the food products from the developing countries. The empirical analysis is based on the World Bank database on estimates of distortions to agricultural incentives and on the World Integrated Trade Solution (WITS) software. Research results suggest that despite numerous policy reforms both in developed and developing countries, there is still a high rate of assistance to agriculture, especially in high-income economies. Although most of them lowered the price support for food products, it has been partly replaced by assistance decoupled from production. At the same time, some developing countries continue their anti-agricultural bias, but most of them ceased taxing the agricultural sector. What is more, share of developing economies in global food trade is increasing, this trend, however, results mainly from increasing intra-trade between developing economies and not from the liberalization of food markets in developed countries.
The progressive processes of globalisation, integration and liberalisation of economies are the reason for which the competitiveness of economic entities is increasingly analysed in the context of their links with the international market. One of the ways to assess competitiveness is to analyse the comparative (relative) advantage in trade in products of a given economic sector. The objective of the article is to assess the comparative advantage in Polish foreign trade in food and non-food products, both in total Polish trade and with European Union Member States. The studies used the RTA relative trade advantage index. The data source was the WITS-Comtrade commercial database. The studies show that, in the years 2004-2017, there was a rapid development of Polish foreign trade in food products, in particular with the EU, resulting in a high trade surplus. Trade in non-food products grew more slowly, and the trade balance was negative. It is shown that Poland had a comparative advantage and was competitive on the world market (also on the EU market) in trade in these products, but did not have such an advantage in total trade in non-food products. The results obtained indicate international competitiveness of the Polish food sector and its large importance for national trade and payment balance.
Some possible scenarios of development of trade, production, demand and prices in the agri-food sector of the Common Market of the South (MERCOSUR) are presented in the paper. A mathematical model of general equilibrium Global Trade Analysis Project (GTAP) was used to make trade forecasts. The results of the analysis showed that the escalation of global agri-food trade liberalization may lead to a growth in the export and import of animal products and sugar and, consequently, may result in an increase in prices and a drop in demand for these goods.
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