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The Reformed CAP and the Industrial World

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  • Josling, Tim

Abstract

CAP reform has important implications for relations with countries outside the Community. As a result of reform, the EC has found it possible to negotiate new rules on agricultural trade in the Uruguay Round of GATT negotiations. The MacSharry compensation payments are sufficiently decoupled to fit into an "allowable" category of domestic policies, protected from challenge by trade partners. Tying compensation payments to hectares used, rather than output, should decrease yields. Breaking the link between farm output and income support brings the Community into line with a number of other countries. Moreover, it gives the flexibility to the Community to incorporate as new members the EFTA countries with their highly protected agricultural sectors, and to open up trade with the Central and Eastern European countries. Together with the conversion of variable levies to tariffs, it recouples EC agriculture with developments on world markets. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Josling, Tim, 1994. "The Reformed CAP and the Industrial World," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 21(3-4), pages 513-527.
    • Handle: RePEc:oup:erevae:v:21:y:1994:i:3-4:p:513-27
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    Cited by:

    1. Arriaza Balmón, Manuel & Gomez-Limon, Jose Antonio, 2002. "Comparative Performance of Selected Mathematical Programming Models," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24792, European Association of Agricultural Economists.
    2. Edwards, Geoff & Fraser, Iain, 2001. "Reconsidering agri-environmental policy permitted by the Uruguay round agreement," Ecological Economics, Elsevier, vol. 37(2), pages 313-326, May.
    3. Baltas, Nicholas C., 1997. "The restructured CAP and the periphery of the EU," Food Policy, Elsevier, vol. 22(4), pages 329-343, August.
    4. Josling, Timothy E. & Honma, Masayoshi & Lee, Jaeok & MacLaren, Donald & Miner, William M. & Sumner, Daniel A. & Tangermann, Stefan & Valdes, Alberto, 1994. "The Uruguay Round Agreement On Agriculture: An Evaluation," Commissioned Papers 14621, International Agricultural Trade Research Consortium.
    5. Arriaza, M. & Gomez-Limon, J. A., 2003. "Comparative performance of selected mathematical programming models," Agricultural Systems, Elsevier, vol. 77(2), pages 155-171, August.
    6. Rob Fraser, 1997. "Land Heterogeneity And The May 1992 Reform Of Cap Cereal Price Support," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 65-70, January.

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