This paper reviews broad literature on political economy as related to agricultural trade. A framework for the analysis of policy in markets subject to extensive government interventions is developed. Literature is reviewed that addresses domestic policy formation in the political arena and the linkages between domestic political choices and their ramifications in international markets. The literature is characterized by a wide variety of models and quantitative techniques. There appears to be no convergence to a general model for endogenizing government behavior as results are often conflicting. One recurring theme is that the problem should dictate the model.