Putting Globalization and Concentration in the Agri-food Sector into Context

Current Agriculture, Food & Resource Issues

Facilitators

The processes of globalization and concentration have been facilitated in the last two
decades by several factors: trade liberalization, various technologies, and management
methods and capabilities.

Trade Liberalization

Relaxation of trade restrictions ranging from the creation of the European Union to
the GATT agreements (now WTO) and numerous free trade agreements like the North
American Free Trade Agreement have all acted to reduce barriers to the flow of goods and
services. These agreements have facilitated a dramatic increase in trade worldwide, but
particularly among the more developed regions of the world.

Information, Communication and Computer Technologies

Advances in these technologies have allowed corporations to integrate and control
global corporations relatively seamlessly. Access to corporate information can be
immediate and ubiquitous. When combined with improved decision-making and system-
control software, control of global corporations is simplified.

Logistics and Transportation Technologies

Improved transportation methods and better storage and packaging technologies have
made it easier and faster to move agri-food products around the world and still retain the
value and shelf life of the products.

Figure 3 Canadian agri-food trade, imports and exports (billions of Cdn.$)

Source: Quarterly Trade data at http://www.agr.ca/policy/epad

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