The impact of the Common Agricultural Policy on developing countries

Please note: Each EPRS Study is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.Being the biggest world agri-food importer and exporter, the European Union plays an important role in international agricultural markets. The Common Agricultural Policy (CAP) has considerable influence on international agri-food market.

With the CAP 2014-2020, the distortive effect of the policy have been dramatically reduced. However, voluntary coupled support are a matter of concern. Following the 2014-2020 CAP, Member States may grant voluntary coupled support (VCS) to specific sectors undergoing difficulties. All Member States except Germany have opted to apply VCs in some sectors and this generated market distortions both in the internal and in the international marketplace.

Another feature of the 2014-2020 CAP is its competitive -oriented approach. Increased competition can boost agricultural development of non-EU countries but can also imply risks for sustainable development and food security. Growing demand supported by the CAP can also have a negative environmental impact. Therefore there are concerns about the coherence of the CAP support with environmental and climate objectives. Although the 2014-2020 CAP made progress towards ensuring policy coherence, more has to be made in the future CAP reform, particularly with reference to international commitment on climate change. Market distorting effects of some CAP instruments shall also be reconsidered.

• Primary Source

European Parliament: European Parliamentary Research Service: Study, February 2018: The impact of the Common Agricultural Policy on developing countries http://www.europarl.europa.eu/RegData/etudes/STUD/2018/603862/EXPO_STU(2018)603862_EN.pdf

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