Chapter

An Introduction to the CAP and the Book

Arlindo Cunha and Alan Swinbank

in An Inside View of the CAP Reform Process

Published in print February 2011 | ISBN: 9780199591572
Published online May 2011 | e-ISBN: 9780191725579 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199591572.003.0001
An Introduction to the CAP and the Book

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When the European Economic Community (EEC) was founded in 1958, agriculture was included in the common market, and the Treaty of Rome specified there would be a common agricultural policy (CAP). Following the Stresa Conference, the Commission and the member states developed the basic principles that would underpin the CAP: common pricing, financial solidarity, and Community Preference. The CAP that emerged in the 1960s was largely based on market price support, which required three policy instruments: high import tariffs, intervention buying of products surplus to consumer requirements, and export subsidies to dispose of product on world markets. Despite the efforts of Sicco Mansholt, policy-makers resisted CAP reform. The budget cost of the CAP, and the launch of the Uruguay Round of GATT negotiations in 1986, meant the policy was ripe for reform.

Keywords: EEC; CAP; Stresa; Mansholt; tariffs; intervention; export subsidies; Community Preference; budget cost

Chapter.  6200 words.  Illustrated.

Subjects: European Union

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