Whither the European Agricultural Policy? – A viable reform of the CAP in the context of an enlarged EU and the Doha Development Round

Abstract: The problems of the CAP are well known. But viable solutions to bring an end to the negative effects of European agriculture are hard to find. The solution is a radical over-haul of the current system where re-nationalisation of agricultural subsidy programs combined with the elimination of export subsidies and the fast reduction of import duties over a period of 5 years is crucial, says the author. Dismantle all price-rigging schedules immediately. Abolish export subsidies immediately. Reduce import duties immediately and phase them out step by step. Reduce and abolish farm subsidies over a 5-year-period (20 % annually). Re-nationalise the subsidy programs for agriculture. A re-nationalisation of the policy for agricultural subsidies will reduce the effects of the agricultural lobby which represents only a small portion of the European economy and population, says the author. (Agriculture contributes only 3 to 4 % to the EU's combined GDP but takes half the EU budget.) Neither the Franco-German agreement, nor the Fischler proposals are sustainable. The EU has to reform the CAP before the enlargement if we want to avoid severe policy conflicts in the future, and if we want the EU to contribute positively to the Doha negotiations , concludes the author.

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