EC Common Agricultural Policies and their Impact on the Exports of Developing Countries

As well as by supply and demand, current EC trade in agricultural products is determined by classical trade policy instruments such as tariffs and quotas, and by numerous internal instruments which influence consumption, production and storage. First there is the Common Agricultural Policy (CAP) covering the vast majority of products grown within the EC. The CAP encompasses different market intervention systems depending on the product, and in addition there are numerous exceptions to trade regulations — often for single products and countries. Secondly, a broad group of commodities not included in the CAP are tropical fruits and beverages, spices, and agricultural raw materials for industrial use. For these products GATT regulations and the different preference systems for developing countries are applicable. Thirdly, a group of commodities in between these two basic categories are grain substitutes such as oilseeds, oilcakes, grain by-products (such as bran, corn gluten feed, maize germ, oilcake), citrus pulp, and other protein feed stuff for which trade follows GATT rules and is relatively liberal while EC production of close substitutes or even the same products (some oilseeds) is highly protected.