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The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints

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  • Hans van Meijl
  • Frank van Tongeren

Abstract

This paper examines the compatibility of the Agenda 2000 reform of the Common Agricultural Policy (CAP) of the European Union (EU) with the EU's commitments to reduce export subsidies made under the GATT Uruguay Round Agreement on Agriculture. A multi-region applied general equilibrium model, which includes relevant CAP measures, is used to obtain a quantitative assessment and to analyse the effects of alternative world market price changes on the fulfilment of these commitments. We show that Agenda 2000 helps the EU to remain within its export subsidy commitments, but to a lesser extent within its export volume constraints. Furthermore, conclusions with regard to export subsidies depend on the world market situation. A forward-looking analysis that anticipates the WTO Doha Round indicates that further adjustments to the CAP are inevitable. Copyright 2002, Oxford University Press.

Suggested Citation

  • Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 445-470, December.
  • Handle: RePEc:oup:erevae:v:29:y:2002:i:4:p:445-470
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    Cited by:

    1. Lips, Markus, 2004. "The Cap Mid Term Review And The Wto Doha Round; Analyses For The Netherlands, Eu And Accession Countries," Report Series 29092, Agricultural Economics Research Institute.
    2. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2006. "Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?," Working Papers 18870, TRADEAG - Agricultural Trade Agreements.
    3. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2005. "Alternative Market Access Scenarios in the Agriculture Trade Negotiations of the Doha Round," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2).
    4. 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.
    5. Joseph Francois & Hans van Meijl, 2003. "Economic Implications of Trade Liberalization Under the Doha Round," Working Papers 2003-20, CEPII research center.
    6. Giovanni Anania, 2007. "Multilateral trade negotiations, preferential trade agreements and European Union’s agricultural policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
    7. Banse, Martin & Grethe, Harald, 2006. "Using the Logistic Functional Form for Modelling International Price Transmission in Net Trade Simulation Models," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25344, International Association of Agricultural Economists.
    8. Conforti, Piero & Velazquez, Beatriz E., 2004. "The Effects of Alternative Proposals for Agricultural Export Subsidies in the Current WTO Round," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1).
    9. Giulia LISTORTI, 2008. "Price Transmission Mechanisms: a Policy Investigation of International Wheat Markets," Working Papers 318, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.
    11. Banse, Martin & Helming, John F.M. & van Meijl, Hans & Nowicki, Peter, 2008. "SCENAR2020: Future of European Agriculture under Different Policy Options, the economic modelling framework," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6593, European Association of Agricultural Economists.
    12. Meijl, Hans van & Tongeren, Frank van, 2004. "International diffusion of gains from biotechnology and the European Union's Common Agricultural Policy," Agricultural Economics, Blackwell, pages 307-316.
    13. van Berkum, Siemen & Roza, Pim & van Tongeren, Frank W., 2005. "Impacts of the EU sugar policy reforms on developing countries," Report Series 29139, Agricultural Economics Research Institute.
    14. Flichman, Guillermo & Donatelli, Marcello & Louhichi, M.K. & Romstad, Eirik & Heckelei, Thomas & Auclair, D. & Garvey, E. & van Ittersum, Martin K. & Janssen, Sander J.C. & Elbersen, Berien S., 2006. "Quantitative models of SEAMLESS-IF and procedures for up-and downscaling," Reports 9297, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society.
    15. Helming, John F.M. & Verhoog, A. David & van Meijl, Hans & Nowicki, Peter, 2008. "Effects of CAP reform on regional employment in the EU," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44373, European Association of Agricultural Economists.
    16. Gohin, Alexandre, 2006. "Assessing the 2003 CAP Reform: Sensitivity to the Decoupling of Agenda 2000 Direct Payments," Working Papers 18868, TRADEAG - Agricultural Trade Agreements.
    17. Tom Achterbosch & Hakim Ben Hammouda & Patrick Osakwe & Frank van Tongeren, 2004. "Trade liberalisation under the Doha Development Agenda Options and consequences for Africa," International Trade 0407013, EconWPA.
    18. Tabeau, Andrzej A. & van Meijl, Hans & Banse, Martin & Woltjer, Geert B., 2008. "Agricultural Incomes Development in EU till 2030: Scenario Analysis of Main Driving Factors," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48115, European Association of Agricultural Economists.

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