in Third World Nurul Islam This paper draws attention to several aspects of the external environment which are of particular relevance to the future of the food and agriculture sector of developing countries, such as the GATT negotiations on agricultural trade, physical environment and biotechnology. This is partly because of the predominance of agriculture-related policy issues in the majority of developing countries where agriculture plays a dominant rote in terms of employment, income, export earnings and import requirements. Also, changes in technology and physical environment relating to agriculture are subject to a high degree of uncertainty These issues are relatively new and knowledge about them is still evolving and as a result the formulation of possible policy options is in its early stages.