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Discuss the claim that, despite repeated reform, the Common Agricultural Policy (CAP) still retains its protectionist nature - Essay Example

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The main objective of the CAP is to ensure that the farmers’ living standards are decent, and provision of stable and safe food…
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Discuss the claim that, despite repeated reform, the Common Agricultural Policy (CAP) still retains its protectionist nature
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Extract of sample "Discuss the claim that, despite repeated reform, the Common Agricultural Policy (CAP) still retains its protectionist nature"

Download file to see previous pages These regulations cover rural development, horizontal matters like financial support and controls, direct payments for farmers among others. Most critics view the Common Agricultural Policy as a form of protectionism meant to defend European producers from inexpensive products produced outside the European Union. This paper is going to discuss the claim that despite repeated reform, the Common Agricultural Policy retains its protectionist nature.
Over the years, the European Union has been a model in regional integration and trade promotion trough out the world. This is evidenced by its move to cut many trade barriers through bilateral trade agreements, giving grants to poor countries, not forgetting that its creation has enhanced trade among the member states in a very significant way. Most importantly, it can be noted that the European Union is one of the trading blocs with lowest tariffs on imports from non-member states. Although this claim is true to some extent, the European Union protects Agriculture, which is one of its member states’ key industry sectors through the Common Agricultural Policy.
The Common Agricultural Policy enacts trade barriers on agricultural produce from outside the European Union and at the same time subsidizing the domestic producers among its member states. Subsidies and artificially higher prices sometimes lead to overproduction, hence food surpluses in the European markets. The European Union in turn sells the excess supplies to the world market through subsidized exports, ensuring that domestic farmers enjoy higher income and job security. These subsidized export products are sold below the market prices, competing unfairly with products from developing economies. Some of the surpluses are stored to make the food mountains which are often destroyed when they cannot be sold. Consumers on the other hand are compelled to pay artificially higher prices for the food ...Download file to see next pagesRead More
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