IDEAS home Printed from
   My bibliography  Save this paper

The Cap Reform And Ec-Us Relations: The Gatt As A "Cap" On The Cap


  • Guyomard, Herve
  • Mahe, Louis Adrien Pascal
  • Roe, Terry L.
  • Tarditi, Secondo


Reform of the Common Agricultural Policy has entailed the substitution of new income support instruments for the former price based instruments, mainly in the cash crop sector. Our first point is that the domestic political balance was unable to generate such a large change in policy design, in spite of inefficiencies and inbalances. The pressure of the US has been a major factor in the design of the reform. We argue that trade interests have been crucial to catalyze international collective action in order to countervail domestic pressure groups. The pursuit of an agreement in the GATT is therefore a means to place a cap on the CAP and foster some reform and control over sectors such as sugar and dairy in other countries. We do not foresee the disappearance of sources of tensions between the two countries, as EC animal products become more competitive and as the working of the CAP in the vicinity of world prices will make trade flows sensitive to world macro-economic and agricultural shocks. The Uruguay Round, should not be considered as fully satisfactory, and the long-run objective of further decoupling of payments from production incentives should be pursued.

Suggested Citation

  • Guyomard, Herve & Mahe, Louis Adrien Pascal & Roe, Terry L. & Tarditi, Secondo, 1993. "The Cap Reform And Ec-Us Relations: The Gatt As A "Cap" On The Cap," Working Papers 14432, University of Minnesota, Center for International Food and Agricultural Policy.
  • Handle: RePEc:ags:umciwp:14432

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Munk, K J, 1989. "Price Support to the EC Agricultural Sector: An Optimal Policy?," Oxford Review of Economic Policy, Oxford University Press, vol. 5(2), pages 76-89, Summer.
    2. L. P. Mahé, 1988. "Trade Negotiation and Agriculture: New Approaches and Possible Consequences: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(5), pages 1156-1158.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Agricultural and Food Policy;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:umciwp:14432. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.