Trade in food and agricultural products have a special place in the political consciousness of most countries. Few governments let the market alone decide on what and how much food is imported or the conditions for agricultural exports. The motives driving trade policy are various. In this chapter the authors will: 1) describe the main objectives that drive trade policy in farm and food products and the instruments used; 2) discuss the linkages between domestic and international trade policies in agricultural and food markets; 3) use a political economy approach to explain the process of change in farm and food policies; and 4) explore the interrelationship between domestic policies and the negotiation of trade agreements. The chapter looks at the reasons why various trade policies have survived and continue to dominate the international trade arena, even when they are costly and ineffective. Understanding the linkages between domestic and trade policies and the conflicting interests of governments and stakeholders is important to the understanding of international trade problems and the difficulties in negotiating rules for agricultural trade policies.