Introduction

The World Trade Organization (WTO) was created to promote fair trade around the world, including farm products that are vital for global food security. However, talks under the WTO’s farm trade agreement, called the Agreement on Agriculture (AoA), have been stalling for years. This lack of progress has left many countries frustrated. As a result, states are now turning more often to regional and bilateral trade deals to open markets and protect their farmers.

One recent example is the new US–Latin America agricultural frameworks, which aim to expand market access and reduce tariffs. At the same time, global trade faces new barriers, such as stricter environmental rules and sudden export bans, that make it harder for less developed states to secure food supplies. These challenges show why the WTO must modernize its rules and balance sustainability with fair access to markets.

US–Latin America Agricultural Trade Frameworks

In November 2025, the United States made new farm trade agreements with Argentina, El Salvador, Ecuador, and Guatemala. These agreements opened markets, cut tariffs, and strengthened supply chains. One feature is tariff relief, which lowers taxes on goods like corn and soybeans. They also include exclusions so more products move freely without charges, plus promises to protect food security.

The US government also recently modified its trade rules to address rising food costs. A November 2025 executive order removed taxes on 237 agricultural products. These exemptions focus on crops that are not grown in large amounts in the United States, such as coffee, cocoa, and bananas. This policy shift aims to help American consumers after coffee prices rose by 19 percent earlier in the year. Additionally, new trade deals with countries like Ecuador and Guatemala have opened more markets for both sides. While Latin American partners export more fresh fruit, US farmers can more easily sell corn, soybeans, and poultry. These agreements help rural areas and provide small farmers with more reliable buyers.

Another example for South American partners is Argentina, under President Javier Milei, who secured preferential access for its beef exports and simplified registration for its dairy and pork sectors. In exchange, Argentina dismantled significant non-tariff barriers, including import licensing and statistical taxes, opening the door for US exporters of live cattle, poultry, and high-tech agricultural machinery.

These 2025 deals include historic labor and environmental commitments, such as prohibitions on goods made with forced labor and improved forest governance. By integrating these rules directly into trade frameworks, these states are building more resilient, long-term supply chains that safeguard food security while promoting open, competitive markets. In a broader context, these frameworks reflect a global trend toward “deep free trade agreements.” These are deals that show a shift away from reliance on WTO talks, which have failed to move forward, and demonstrate how regional deals can fill gaps when global negotiations get stuck.

New Trade Barriers: Green Rules and Export Bans

Promoting free trade in agricultural products has become increasingly complex in 2025, as the global market shifts toward a “green” regulatory framework. The OECD’s 2025 Agricultural Policy Monitoring Report highlights that government support to the sector has surged to USD 842 billion annually, with much of this funding tied to strict environmental mandates. Regional deals create new chances, but farm trade also faces barriers. The OECD says more than 130 new rules were introduced between 2020 and 2024. Now, many of them require exporters to meet higher sustainability standards. These rules aim to promote greener production, but they raise costs for farmers. For example, a small coffee farmer in Guatemala may struggle to buy new equipment, while big agribusinesses adapt more easily.

At the same time, export bans remain a common tool for governments that want to protect domestic food supplies during crises. The World Bank has noted that such restrictions raised global food prices by nearly 10 percent recently. FAO studies highlight their disruptive effects on staple crops such as wheat and rice. Poorer states are hit harder because many of them depend on imports for basic foods and lack the financial resources to subsidize farmers or provide emergency food supplies.

Despite a 50 percent drop in new export restrictions in late 2025 compared to previous peaks, several major exporters have made bans on staple crops a semi-permanent tool. The World Bank’s September 2025 Update notes that significant bans on maize, rice, and wheat in states like India, Russia, and Pakistan are set to remain in place through the end of the year to combat domestic inflation. These trade barriers have a ripple effect across global markets. For instance, India’s rice export restrictions in late 2024 helped push international prices upward. This is happening because many depend heavily on imports for basic foods and lack the money to subsidize farmers or build emergency food reserves.

For example, when large exporters restrict rice shipments, countries like Haiti or several sub‑Saharan African states face immediate shortages and rising prices that families cannot afford. This shows how sudden trade barriers can quickly turn into food crises, making it clear that reforms must focus on protecting vulnerable populations. The combination of green rules and export restrictions illustrates how trade policy, even when well‑intentioned, can undermine the goal of fair and open agricultural markets.

Conclusion

Regional frameworks like the US–Latin America agreements show how countries can advance agricultural trade outside stalled WTO talks. Yet subsidies, environmental rules, and export bans remain major obstacles. Without renewed cooperation, regional and bilateral deals may dominate, fragmenting the global trading system instead of uniting it under shared principles.

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