Although the EU strongly opposed the inclusion of agricultural issues in these negotiations, representatives of the Trump administration included agriculture in the negotiating objectives they presented to Congress in early 2019. Global trade in agricultural products is expected to continue to intensify in the coming decades, with greater participation by countries in trade. It is important to note that trade adequacy and related policies will vary from country to country depending on the level of development of the agricultural sector. In addition, the range of possible policies that can be implemented follows the legal and institutional framework created by trade agreements and international frameworks such as the World Trade Organization (WTO). In this context, it is essential to reconcile the achievement of national policy objectives with commitments made under trade agreements, in order to minimize the potentially negative effects of countries` actions on their trading partners. WTO members have taken steps to reform the agricultural sector and address high subsidies and trade barriers that distort agricultural trade. The overall goal is to establish a fairer trading system that improves market access and improves the livelihoods of farmers around the world. The WTO Agreement on Agriculture, which came into force in 1995, is an important step towards reforming agricultural trade and towards fairer and more competitive development. The Committee on Agriculture is monitoring the implementation of the agreement. The United States and the European Union have agreed to open negotiations on trade agreements with the aim of developing the world`s largest trade relations. Trade between the two countries amounts to $1 trillion a year and $3.700 billion in direct investment in both routes.

In 2018, the United States exported $12.7 billion in agricultural products to the EU, while the EU exported $23.7 billion in agricultural products to the United States. More open and free trade has benefited American agriculture, while it is not the only driver of export growth, as shown by the growth in trade between the United States and China, but it is a very important factor that makes economic sense. Economic theory in trade outlines the idea of comparative advantage, a company`s ability to produce a good or service at a lower cost than other companies that compete with it. Different countries will have different products for which they will have a comparative advantage. Given the dispersion of the comparative advantage between countries and products, trade can be mutually beneficial for all countries concerned. Tariffs, border taxes and other trade restrictions distort cost structures and thus distort comparative advantages and trade flows. These data indicate that the signing of a free trade agreement between Canada and the European Union and Korea will increase agricultural exports to European and Asian agricultural markets. In the past, tariffs have been seen as significant barriers to international trade, including agricultural exports.

That is why the World Trade Organization (WTO) has invoked the agricultural agreement to facilitate international trade in agricultural products. For example, the 1994 agricultural agreement was intended to require Member States, including Canada, to reduce distortions in agricultural trade.