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Trade Barrier Volatility and Agricultural Price Stabilization
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1. INTRODUCTION
Restrictions on food exports received much publicity when
prices in international food markets rose from 2005 and spiked
in mid-2008. The rapid rise during 2007–08 was fueled in part
by the news that some developing countries—so as to slow the
rise in domestic prices –were suspending their grain exports.
Agricultural prices came down somewhat in the final few
months of 2008, but the US dollar price of wheat rose by more
than half again in the northern summer of 2010, despite the
replenishment of global stocks ( Figure 1 ). That 2010 rise
was triggered by Russia’s announcement to suspend wheat ex-ports in the wake of its drought and wildfires. In the latter half
of 2010 Ukraine, Belarus, Uzbekistan, and Kazakhstan also
restricted or banned their wheat exports. Meanwhile, India
has retained effectively an export ban on both wheat and rice
since 2008

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