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Brexit, Trade Agreements and CAP Reform

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  • Alan Swinbank

Abstract

Although a number of reforms have significantly changed the Common Agricultural Policy (CAP) over the past two decades, a defining characteristic of the policy is its prohibitively high import tariffs on a number of key commodities as tariff cuts have not formed part of CAP reform. These high tariffs, whilst protecting EU producers, complicate the EU's attempts to negotiate Free Trade Area (FTA) agreements around the world, and will likewise be problematic for agri‐food trade with a post‐Brexit UK, particularly over the politically sensitive border between the EU‐27 and the UK on the island of Ireland. An open border could be more easily secured if the UK's tariff barriers on CAP products matched those of the EU‐27. This, however, implies either that the UK will have to abandon its plans to pursue ‘free‐trade’ policies with other countries around the world, or that the EU‐27 needs to complete its reform of the CAP by unilaterally reducing its tariff barriers. It seems highly unlikely that the challenges posed by Brexit would prompt the EU to unilaterally reduce its excessively high CAP tariffs. Même si un certain nombre de réformes ont grandement modifié la Politique Agricole Commune (PAC) au cours des deux dernières décennies, les droits de douane élevés qui s'appliquent aux importations de produits clés en font partie intégrante. La réduction des droits de douane n'a cependant pas fait partie de la réforme de la PAC. Ces droits élevés, qui protègent les producteurs de l'Union européenne, compliquent les tentatives de l'Union de négocier des accords de zone de libre‐échange dans le monde. Ils seront également un problème pour le commerce agroalimentaire du Royaume‐Uni après le Brexit, en particulier à travers la frontière extrêmement sensible entre l'Union à 27 et le Royaume‐Uni sur l’Île irlandaise. Une ouverture de cette frontière serait plus facile à obtenir si les tarifs douaniers du Royaume‐Uni sur les produits concernés par la PAC correspondaient à ceux de l'Union à 27. Cela signifierait cependant, soit que le Royaume‐Uni abandonne ses plans d'adoption d'une politique de libre‐échange avec les autres pays du monde, soit que l'Union à 27 termine sa réforme de la PAC en réduisant ses droits de douane unilatéralement. Il semble hautement improbable que les défis posés par le Brexit amènent l'Union européenne à réduire les droits de douanes excessifs de la PAC. Mehrere Reformen haben die Gemeinsame Agrarpolitik (GAP) in den letzten zwei Jahrzehnten stark verändert. Zollkürzungen waren jedoch nicht Gegenstand dieser Reformen und so charakterisieren prohibitiv hohe Importzölle auf einige wichtige Erzeugnisse noch immer diese Politik. Die hohen Zölle schützen die Produzenten in der EU, aber erschweren die weltweiten Verhandlungen um Freihandelszonen (Free Trade Areas – FTA). Wahrscheinlich werden sie auch in den Post‐Brexit‐Verhandlungen mit dem Vereinigten Königreich über den Handel mit Agrar‐ und Ernährungsgütern zu Problemen führen, insbesondere mit Blick auf die politisch sensible Grenze zwischen der EU‐27 und dem Vereinigten Königreich auf der irischen Insel. Eine offene Grenze wäre einfacher zu sichern, wenn die Zollbeschränkungen auf GAP‐Produkte zwischen dem Vereinigten Königreich und der EU‐27 übereinstimmen würden. Dies würde aber bedeuten, dass entweder das Vereinigte Königreich seine Pläne zur Freihandelspolitik mit anderen Ländern der Welt fallen lassen müsste, oder dass die EU‐27 ihre GAP‐Reform zum Abschluss bringen müsste, indem sie ihre Zollbeschränkungen unilateral senkt. Es erscheint höchst unwahrscheinlich, dass die Herausforderungen durch den Brexit zeitnah dazu führen könnten, dass die EU ihre überhöhten GAP‐Zölle unilateral reduziert.

Suggested Citation

  • Alan Swinbank, 2017. "Brexit, Trade Agreements and CAP Reform," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 4-9, August.
  • Handle: RePEc:bla:eurcho:v:16:y:2017:i:2:p:4-9
    DOI: 10.1111/1746-692X.12156
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    Cited by:

    1. Swinbank, Alan, 2018. "Tariffs, trade, and incomplete CAP reform," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(2), August.
    2. John Davis, 2019. "EU and US Agricultural Policies Compared," EuroChoices, The Agricultural Economics Society, vol. 18(1), pages 3-3, April.
    3. Alan Matthews, 2017. "Brexit Impacts on Irish Agri‐food Exports to the UK," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 26-32, August.
    4. John Davis, 2018. "Communicating Economic Concepts and Research in a Challenging Environment," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 591-605, September.
    5. Marcin Pigłowski, 2021. "The Intra-European Union Food Trade with the Relation to the Notifications in the Rapid Alert System for Food and Feed," IJERPH, MDPI, vol. 18(4), pages 1-19, February.

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