The CAP Reforms and Changes of EU Agriculture under WTO System

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  • WTO体制下のCAP改革とEU農業の変化
  • WTO タイセイ カ ノ CAP カイカク ト EU ノウギョウ ノ ヘンカ

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Abstract

Since the establishment of the WTO in 1995, the world rule of agricultural trade and domestic agricultural support policies have changed. However, many developed countries continue to impose high trade barriers on their sensitive agricultural products, and the financial support for agriculture has continually increased, although they have changed the support measures. In this paper, we first review the process and details of the Common Agricultural Policy (CAP) reforms—from the Makuhari reform to the Mid-Term Review(MTR) reform in the EU. Then, we analyze the real changes in the market conditions and the political environment surrounding the EU farms, as well as changes in agricultural inputs, production, and the trade of agricultural products in the former 15 EU countries. Based on our analysis, it can be founded that after several CAP reforms, the prices of many agricultural products in the EU are getting closer to the world market price. In addition, the export subsidies on agricultural products has greatly decreased, and the growth of total financial spending on agricultural support has been controlled. However, these reforms did not have considerably negative impacts on agriculture, and the problem lies with the prevailing high trade barriers on sensitive agricultural products. Since the establishment of the WTO, the input and export of agricultural products in the EU have continued to increase, but the overwhelming majority of the trade takes place among the EU members.

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