Global trade in agricultural products is shaped by the policies of major world trading powers, such as the United States, European Union, and Japan, and by international agreements. The formation of the World Trade Organization in January 1995 represented a broadening of the process of the multilateral approach to trade issues that had been conducted under the General Agreement on Tariffs and Trade (GATT) since 1947.

A major objective of agricultural policies in most developed countries is to support agricultural prices and incomes. In many developing countries, ensuring an adequate supply of food at reasonable prices to consumers is a major policy objective.