Geopolitical shocks and trade disruptions have made imports less reliable, especially for essential goods like food. This column outlines a framework where trade costs are stochastic, creating a trade-off between efficient but risky imports and secure but costly domestic supply. It argues that when trade is risky, policies that look protectionist can partly act as insurance against shortages, helping explain why food importers support domestic agriculture more. Global trade has become risky.

Tag-uri: Agricultura