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Potential WTO Challenges to the CAP†

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  • Alan Swinbank

Abstract

Since the early 1990s the EU's CAP has undergone considerable change with, first, a switch from market price support to direct payments in 1992 and, second, a further decoupling of support with the creation of the single payment scheme in 2003. Nonetheless, whether the current Doha Round of WTO trade negotiations is successfully completed or not, the CAP will come under renewed scrutiny, as a result either of negotiated reductions in support or of litigation through the WTO's dispute settlement process. This article discusses CAP market price and income support in the context of these likely WTO constraints. Depuis le début des années 1990, la PAC (Politique agricole commune) a subi des changements considérables dont le remplacement du soutien des prix du marché par des aides directes en 1992, suivi du découplage accru du soutien avec la mise en place du régime de paiement unique (RPU) en 2003. Toutefois, que les négociations commerciales actuelles du cycle de Doha de l'OMC se terminent avec succès ou non, la PAC fera l'objet d'un examen approfondi, que ce soit en raison des réductions négociées du soutien ou en raison des litiges portés devant le mécanisme de règlement des différents de l'OMC. Le présent article traite du soutien du revenu et des prix du marché dans le contexte de ces contraintes de l'OMC.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:canjag:v:56:y:2008:i:4:p:445-456
    DOI: 10.1111/j.1744-7976.2008.00140.x
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    1. repec:hal:spmain:info:hdl:2441/8228 is not listed on IDEAS
    2. 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.
    3. Swinbank, Alan & Tranter, Richard B., 2005. "Decoupling EU Farm Support: Does the New Single Payment Scheme Fit within the Green Box?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(1), pages 1-15.
    4. Swinbank, Alan & Ritson, Christopher, 1995. "The impact of the GATT agreement on EU fruit and vegetable policy," Food Policy, Elsevier, vol. 20(4), pages 339-357, August.
    5. James Rude, 2008. "Production Effects of the European Union's Single Farm Payment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 457-471, December.
    6. Richard H. Steinberg & Timothy E. Josling, 2003. "When the Peace Ends: The Vulnerability of EC and US Agricultural Subsidies to WTO Legal Challenge," Journal of International Economic Law, Oxford University Press, vol. 6(2), pages 369-417, June.
    7. Swinbank, Alan, 2006. "The EU’s Export Refunds on Processed Foods: Legitimate in the WTO?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(2), pages 1-16.
    8. Joseph A. McMahon, 2007. "Trade Policy Reform Through Litigation La voie judiciaire pour réformer les politiques commerciales Reform der Handelspolitik durch Rechtsstreitigkeiten," EuroChoices, The Agricultural Economics Society, vol. 6(2), pages 42-47, August.
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    Cited by:

    1. Josling, Tim & Mittenzwei, Klaus, 2012. "Adding value to applied policy models: The case of the WTO and OECD support classification systems," Conference papers 332198, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Swinbank, Alan, 2009. "EU Support for Biofuels and Bioenergy, Environmental Sustainability Criteria, and Trade Policy," Price Volatility and Beyond 320208, International Centre for Trade and Sustainable Development (ICTSD).
    3. Maria Espinosa & Kamel Louhichi & Angel Perni & Pavel Ciaian, 2020. "EU‐Wide Impacts of the 2013 CAP Direct Payments Reform: A Farm‐Level Analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 695-715, December.
    4. Vincent Chatellier, 2011. "Price volatility, market regulation and risk management: challenges for the future of the CAP," Working Papers SMART 11-04, INRAE UMR SMART.
    5. 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.
    6. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    7. Galluzzo Nicola, 2020. "A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis," European Countryside, Sciendo, vol. 12(4), pages 494-505, December.
    8. Nicola Galluzzo, 2021. "Estimation of the impact of CAP subsidies as environmental variables on Romanian farms," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(3), pages 1-24.
    9. 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.
    10. Mittenzwei, Klaus & Britz, Wolfgang & Wieck, Christine, 2012. "Studying the effects of domestic support provisions on global agricultural trade: WTO and OECD policy indicators in the CAPRI model," Conference papers 332212, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. James Rude, 2008. "Production Effects of the European Union's Single Farm Payment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 457-471, December.
    12. Thorsøe, Martin & Noe, Egon & Maye, Damian & Vigani, Mauro & Kirwan, James & Chiswell, Hannah & Grivins, Mikelis & Adamsone-Fiskovica, Anda & Tisenkopfs, Talis & Tsakalou, Emi & Aubert, Pierre-Marie &, 2020. "Responding to change: Farming system resilience in a liberalized and volatile European dairy market," Land Use Policy, Elsevier, vol. 99(C).

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