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Agenda 2000 Reform of the CAP and its Impacts on Member Member States: A Note

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  • G Philippidis
  • L J Hubbard

Abstract

We evaluate the Agenda 2000 reform of the CAP for each of the 15 member states of the EU, accounting for general equilibrium effects and bilateral trade links. Results reflect the impacts in 2008 projected from a 1997 database. In most member states, output of crops falls and there is a switch in the use of arable land from oilseeds to cereals. Output of cattle also falls, but that of milk, pigs and poultry increases. Total farm income falls in 11 member states, although livestock producers throughout the EU gain. Consumer price indices fall everywhere. In terms of GDP, Luxembourg, Finland, Ireland and Portugal gain the most; Germany, Greece and the UK gain the least; and Spain loses. The net budgetary cost to the EU of the reform package is estimated to be an additional €3,203 million. Thus, further cuts in support are of paramount importance if the EU is to be prepared for the accession of new members.

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  • G Philippidis & L J Hubbard, 2003. "Agenda 2000 Reform of the CAP and its Impacts on Member Member States: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 479-486, November.
    • Handle: RePEc:bla:jageco:v:54:y:2003:i:3:p:479-486
    DOI: 10.1111/j.1477-9552.2003.tb00073.x
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    1. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. McDougall, Robert, 2002. "A New Regional Household Demand System For Gtap," Technical Papers 28713, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Bruce Morley & Wyn Morgan, 2008. "Causality between Exports, Productivity and Financial Support in European Union Agriculture," Regional Studies, Taylor & Francis Journals, vol. 42(2), pages 189-198.
    2. Gracia, Azucena & de Magistris, Tiziana & Casado, Jose Maria, 2008. "The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6590, European Association of Agricultural Economists.
    3. Philippidis, George & Hubbard, Lionel J. & Renwick, Alan W., 2006. "A CGE Analysis of the Harbinson Proposal: Outcomes for the EU25," Working Papers 45992, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.

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