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Abstract
Upward spikes in international food prices lead some food-surplus countries to raise export
barriers and some food-deficit countries to lower their import restrictions on staple foods – and
conversely when prices slump. When many countries so respond, their actions in aggregate
exacerbate the international price spike, making adjustment even more difficult for other countries.
This paper reviews conceptually, and then empirically for a sample of small and poor economies,
the role of trade measures for achieving the social objective of assisting those hurt by sharp
changes in food prices. The data are monthly for the period of 2006 to 2012, and annually since
1990. The paper concludes by exploring the efficacy of using trade policy instruments versus
domestic measures to reduce the risk of welfare losses for vulnerable households, and stresses the
importance for small and poor economies of supporting multilateral efforts to outlaw beggar-thy-neighbour
policy responses to food price spikes.