European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.10, No.36, 2018 159 Food Security and International Trade in Agriculture: Short and Long Term Evidence from Low Income and Food-Deficit Countries (DCs) Di He* Ingrid Epezagne Prasad Siba Borah a School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, Jiangsu Province, P.R. China Abstract In this article, we study the correlation between food security and international trade. According to the Food and Agriculture Organization of the United Nations (FAO), we speak of food security "when all people, at all times, have economic, social and physical access to sufficient, safe and nutritious food that satisfies their nutritional needs and dietary preferences to enable them to live active and healthy lives". Since 1980, as a result of the structural adjustment programs (SAPs), low-income and food-deficit countries (DCs) have been liberalizing agriculture and opening up trade, which has sometimes resulted in the deterioration of their balance sheets, while developed countries have always maintained their agricultural protectionism to the detriment of these developing states, where their returns have been increased (domestic support and export subsidies). In addition to this trade imbalance, persistent instability in conflict-ridden regions, adverse climatic events in many parts of the world, and economic slowdowns that have affected the most peaceful regions and worsened food security explain the ongoing crises in food industry in many developing countries. Indeed, food security is a goal displayed by all countries but can it be achieved? For this research, we attempted to show some of the weaknesses of international trade in agricultural, as well as some improvements that can be made. Also, agricultural support infrastructure in developing countries needs to be set up to unable the processing of raw materials and therefore achieving value addition. Developing countries should be allowed to impose duties when their balance of payments is extremely deficient. Keywords: Food security, Agricultural liberalization, International trade in agriculture, Developing countries INTRODUCTION This paper evaluates the impact of international trade in agribusiness on food security. The question of food security is one that only few countries seems to have found an answer to. And the method for resolving the issue of food security often times involve some level of trade with other countries. With an increase in population of more than 35% (Foley, 2014) in 2050, world governments will be faced with the need to feed nine billion people. For this to be achievable, agricultural production should double, significantly surpassing population growth. However, with around 821 million in 2017, compared to around 804 million people hungry in 2016 (UN, 2017) in the world, global food security does not seem to be achievable. We can observe that very often trade agreements benefits one set of countries more than others. LITERATURE REVIEW So far there is no empirical theory that can systematically show the effect of international trade and food security. Therefore, we rely on previous research and books in the area of food security and international trade and make a qualitative analysis to deduce the relation between them. According to studies conducted by UNDP (1997) and Madeley and Solagral (2001), free trade and food security has a correlation. A recent study by Matthews (2014) has highlighted the close link between international trade and food security. International trade directly affects food security through impact on food availability and indirectly through the impact on food accessibility and stability (Diaz-Bonilla et al., 2003; Smith, 1998;). Huchet Bourdon & Laroche Dupraz (2014) analyzed the impact of international trade on the determinants of food security. Trade influences food security through its impact on food availability, employment, income distribution, poverty and trade policy directly affect government revenue through trade taxes and indirectly by its impact on and variability of growth (Diaz-Bonilla & Ron, 2010). Matthews (2014) highlights the role of an open and predictable trading system in the governance of global food security. With economic liberalization, pressure for the liberalization of agricultural trade has also increased. Overall, the impact of trade liberalization on food security is uncertain and complex. More than 30% of the global workforce works in agriculture and about 70% of them are most vulnerable to food insecurity. One-tenth of global cereal production goes into international trade (World Bank, 2012). The contribution of agriculture to total merchandise trade was 9.2% (WTO, 2013). The share of developing countries in agricultural trade is very low and least developed countries (LDCs) account for only 1% of agricultural trade (World Bank, 2012). As a result, the structure of world trade is severely affecting the livelihoods and food security of small farmers. Proponents of brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by International Institute for Science, Technology and Education (IISTE): E-Journals