International Handbook on the Economics of Integration, Volume III Factor Mobility, Agriculture, Environment and Quantitative Studies
Factor Mobility, Agriculture, Environment and Quantitative Studies
- Elgar original reference
Edited by Miroslav N. Jovanović
10 The reforms of the Common Agricultural Policy Huib Silvis and Roel Jongeneel 1 INTRODUCTION The formation of the European Union (EU) is an example of economic integration sui generis. Within the EU integration experiment, the integration with respect to agriculture played a key role. It was one of the major conditions that had to be addressed in order to get the whole experiment running.1 The Common Agricultural Policy (CAP) was and still is a set of instruments to achieve, develop and further deepen this integration. At the same time the policies can be specified in such a way that they function as a stumbling block to integration. As becomes clear after reviewing the evolution of the CAP, integration is an ongoing process, requiring multiple reforms. In this process, structural changes in the economy and political–economy factors play a co-determining role and affect the focus of the integration (Petit, 1989; Blandford, 1996). Initially, the emphasis of the CAP was on internal market integration and protecting EU agriculture from world markets. Later on, when for several products the EU switched to becoming a net exporter and became more reliant on world markets for surplus disposal, issues of external integration (world trade relations and policies) became more prominent. At the same time, new issues of integration emerged, such as environment, biodiversity, sustainable land use, animal welfare and so on (Garzon, 2006). The (previous) enlargements of the EU15 with 10 new member states in 2004 and another two in 2007 are still...
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