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CAP Reform and the WTO: Potential Impacts on EU Agriculture

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  • Binfield, Julian C.R.
  • Donnellan, Trevor
  • Hanrahan, Kevin F.
  • Hart, Chad E.
  • Westhoff, Patrick C.

Abstract

In 2003 an agreement was finalized to instigate arguably the most significant reform of the European Union's (EU) Common Agricultural Policy (CAP) since its inception. In the Luxembourg Agreement many of the direct payments that have been linked to production are decoupled and instead provided in the form of a land-based payment. The reforms did not include any significant changes to either EU border support or the ability of the EU to utilize export subsidies that have been widely criticized by other nations. Even though the reforms do not directly address trade in agricultural products it is argued that World Trade Organization (WTO) concerns played a significant role in the designs of the reforms. In this paper an analysis of the Luxembourg reforms and the European proposal for agriculture under the WTO is presented. The results are used as the basis for a discussion of the interaction of the WTO and CAP reform and the implications for the agricultural sector in the EU.

Suggested Citation

  • Binfield, Julian C.R. & Donnellan, Trevor & Hanrahan, Kevin F. & Hart, Chad E. & Westhoff, Patrick C., 2004. "CAP Reform and the WTO: Potential Impacts on EU Agriculture," 2004 Annual meeting, August 1-4, Denver, CO 20020, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea04:20020
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    File URL: http://purl.umn.edu/20020
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    References listed on IDEAS

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    1. David A. Hennessy, 1998. "The Production Effects of Agricultural Income Support Policies under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 46-57.
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    Cited by:

    1. Binfield, Julian C.R. & Donnellan, Trevor & Hanrahan, Kevin F. & Westhoff, Patrick C., 2009. "WTO Doha Round: Impact of an Agreement on Agriculture and the Importance of Sensitive Products," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50936, Agricultural Economics Society.
    2. Gelan, Ayele & Schwarz, Gerald, 2006. "A Policy Impact Evaluation Model For Scotland: Decoupling Single Farm Payments," MPRA Paper 1491, University Library of Munich, Germany.
    3. Sahrbacher, Christoph, 2011. "Regional structural change in European agriculture: Effects of decoupling and EU accession," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 60, number 60.
    4. James Rude, 2008. "Production Effects of the European Union's Single Farm Payment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 457-471, December.
    5. Halmai, Peter & Elekes, Andrea, 2005. "CAP Reform in the Light of the WTO Doha Round Negotiations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24693, European Association of Agricultural Economists.
    6. 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.
    7. Tranter, R.B. & Swinbank, A. & Wooldridge, M.J. & Costa, L. & Knapp, T. & Little, G.P.J. & Sottomayor, M.L., 2007. "Implications for food production, land use and rural development of the European Union's Single Farm Payment: Indications from a survey of farmers' intentions in Germany, Portugal and the UK," Food Policy, Elsevier, vol. 32(5-6), pages 656-671.
    8. Rude, James, 2007. "Production Effects of the European Union’s Single Farm Payment," Working Papers 7335, Canadian Agricultural Trade Policy Research Network.

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    Keywords

    International Relations/Trade;

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