Political Economy of the Common Agricultural Policy in the European Community

Abstract

National and supranational agricultural policies of industrialised countries play an increasing role in international economic relations. The recent GATT negotiations centre on this topic which is one of the most controversial issues not only between developed and developing countries but also among industrialised countries. The high levels of agricultural protection in developed countries are said to be responsible for distorted and destabilised world markets, for discrimination against farming in developing countries and finally for substantial efficiency losses and environmental stress in the rich countries themselves. The Common Agricultural Policy (CAP) of the European Community (EC) has been especially blamed for such adverse effects on trading partners, domestic consumers, taxpayers and the environment. Being the world’s largest food importer and one of the most important exporters of food, the enlarging EC attracts both market power and a key role in developing and reforming agricultural policies world wide. Hence, it appears to be worthwhile to study the current and future decision-making process within the CAP.