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Member States And The Preferential Trade And Budget Effects Of The 1992 Cap Reform: A Note

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  • Robert W. Ackrill
  • Robert C. Hine
  • Anthony J. Rayner
  • Massimo Suardi

Abstract

This paper quantifies the Preferential Trade and Budget Effects of the 1992 CAP reform on the member states of the EU. It compares these effects with the pre‐reform situation, assuming a full and instantaneous implementation of the reform. Changed methods of support and modified price support levels produce income redistribution between member states. Three countries, namely France, Ireland and the Netherlands, who are substantial beneficiaries from the CAP, suffer absolute net losses of more than ten per cent by value from the reform, with the greatest impact in per capita terms falling on Ireland. On the other hand, Spain, Greece and Portugal benefit substantially whilst Germany and the UK, the two largest contributors to the EU budget, show a marginal net gain from the reform.

Suggested Citation

  • Robert W. Ackrill & Robert C. Hine & Anthony J. Rayner & Massimo Suardi, 1997. "Member States And The Preferential Trade And Budget Effects Of The 1992 Cap Reform: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 93-100, January.
    • Handle: RePEc:bla:jageco:v:48:y:1997:i:1-3:p:93-100
    DOI: 10.1111/j.1477-9552.1997.tb01134.x
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    References listed on IDEAS

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    1. Allanson, Paul, 1993. "The Impact of the Modulation Proposal in the MacSharry Plan for Reform of the Cereals Regime," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 20(1), pages 99-109.
    2. C N Morris, 1980. "The Common Agricultural Policy," Fiscal Studies, Institute for Fiscal Studies, vol. 1(2), pages 17-35, March.
    3. Alan Swinbank, 1993. "CAP Reform, 1992," Journal of Common Market Studies, Wiley Blackwell, vol. 31(3), pages 359-372, September.
    4. Brian Ardy, 1988. "The National Incidence of the European Community Budget," Journal of Common Market Studies, Wiley Blackwell, vol. 26(4), pages 401-429, June.
    5. R.W. Ackrill & M. Suardi, R.C. Hine & A.J. Rayner,, "undated". "The Impact of the MacSharry Reforms on the Distributional Effects of the Common Agricultural Policy Between Member States," Discussion Papers 95/16, University of Nottingham, CREDIT.
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