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The Common Agricultural Policy and Its Reform: The Problem of Reconciling Budget and Trade Concerns

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  • Robert Ackrill
  • Adrian Kay
  • Wyn Morgan

Abstract

In 2008, the Common Agricultural Policy (CAP) reached its fiftieth birthday. It has been a constant factor in directing resources to the EU agricultural sector, but the means of channelling these resources have changed considerably over time. This article charts the evolution of the CAPs principal policy instruments and analyzes the welfare effects of its major reforms. It also analyzes these changes in terms of the institutional context of the principal reform pressures, namely international trade obligations and EU budget concerns. We will show that the link between these two pressures was never one of simple determinism: the CAP and its reform can only be understood in light of these pressures and of endogenous vested interests to the policy. En 2008, la Politique agricole commune (PAC) célèbre ses 50 ans. Cette politique a été un facteur constant de l'orientation des ressources vers le secteur agricole de l'UE, mais les moyens utilisés pour acheminer ces ressources ont changé considérablement au fil du temps. Le présent article retrace l'évolution des principaux instruments de la PAC et analyse les effets de ses grandes réformes sur le bien‐être. Elle analyse aussi ces changements dans le contexte institutionnel des pressions de la réforme, à savoir les obligations commerciales internationales et les préoccupations quant au budget de l'UE. Nous montrons que le lien entre ces deux types de pression n'a jamais été d'un déterminisme simple: la PAC et sa réforme ne peuvent être comprises qu'en examinant ces pressions et les droits acquis endogènes qu'elles génèrent.

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  • Robert Ackrill & Adrian Kay & Wyn Morgan, 2008. "The Common Agricultural Policy and Its Reform: The Problem of Reconciling Budget and Trade Concerns," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 393-411, December.
    • Handle: RePEc:bla:canjag:v:56:y:2008:i:4:p:393-411
    DOI: 10.1111/j.1744-7976.2008.00137.x
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    References listed on IDEAS

    as
    1. Adrian Kay & Robert Ackrill, 2008. "Institutional change in the international governance of agriculture: a revised account," NBS Discussion Papers in Economics 2008/4, Economics, Nottingham Business School, Nottingham Trent University.
    2. repec:bla:eurcho:v:7:y:2008:i:specialissuecap:p:6-12 is not listed on IDEAS
    3. Berkeley Hill, 2008. "Some Economics of Public Statistics," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 387-420, September.
    4. Barbero, Guiseppe, et al, 1984. "The Siena Memorandum on 'The Reform of the Common Agricultural Policy.'," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 11(2), pages 255-259.
    5. L. Alan Winters, 2015. "Digging for Victory: Agricultural Policy and National Security," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 7, pages 125-145, World Scientific Publishing Co. Pte. Ltd..
    6. Alan Swinbank, 2008. "Potential WTO Challenges to the CAP†," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 445-456, December.
    7. Joe Dewbre & Jesús Antón & Wyatt Thompton, 2001. "The Transfer Efficiency and Trade Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1204-1214.
    8. Ackrill, Robert, 2000. "The European Union Budget, the Balanced Budget Rule and the Development of Common European Policies," Journal of Public Policy, Cambridge University Press, vol. 20(1), pages 1-19, April.
    9. repec:bla:jcmkts:v:45:y:2007:i::p:1-22 is not listed on IDEAS
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    Cited by:

    1. Andrew Schmitz & Troy G. Schmitz & Paul Schure, 2008. "High Commodity Prices and the EU's Single Payment Scheme: Some Consequences of Double‐Dipping," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 523-531, December.
    2. Robert Finger & Niklaus Lehmann, 2012. "The influence of direct payments on farmers’ hail insurance decisions," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 343-354, May.
    3. Alan Swinbank, 2008. "Potential WTO Challenges to the CAP†," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 445-456, December.
    4. Patricia Garcia-Duran & Montserrat Millet, 2014. "The determinants of CAP reform: learning from the European financial crisis and CAP 2013," UB School of Economics Working Papers 2014/315, University of Barcelona School of Economics.
    5. Arovuori, Kyösti & Yrjölä, Tapani, 2015. "The impact of the CAP and its reforms on the productivity growth in agriculture," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212241, European Association of Agricultural Economists.
    6. Galli, Francesca & Prosperi, Paolo & Favilli, Elena & D'Amico, Simona & Bartolini, Fabio & Brunori, Gianluca, 2020. "How can policy processes remove barriers to sustainable food systems in Europe? Contributing to a policy framework for agri-food transitions," Food Policy, Elsevier, vol. 96(C).
    7. Sachin Kumar Sharma & Adeet Dobhal & Surabhi Agrawal & Abhijit Das, 2021. "Demystifying Blue Box Support to Agriculture Under the WTO: Implications for Developing Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 22(2), pages 161-185, September.
    8. Troy G. Schmitz & Christopher R. Giese & Clifford J. Shultz II, 2008. "Welfare Implications of EU Enlargement under the CAP," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 555-562, December.
    9. Arovuori, Kyosti, 2015. "Empirical analysis on the development of policy objectives of the CAP," 2015 Conference, August 9-14, 2015, Milan, Italy 210960, International Association of Agricultural Economists.
    10. Li Peng & Tiantian Chen & Shaoquan Liu, 2016. "Spatiotemporal Dynamics and Drivers of Farmland Changes in Panxi Mountainous Region, China," Sustainability, MDPI, vol. 8(11), pages 1-17, November.
    11. Arovuori, Kyösti, 2017. "Jak reformy WPR przyczyniły się do zmian strukturalnych w rolnictwie?," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).

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