The Basic Mechanisms of European Community (EC) Policy: Illustrated by: Target, Intervention, and Threshold Prices, Plus Levies and Refunds: How They Work

William J. Hudson and Economic Research Service

No 330595, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Excerpts from the booklet: The principal price support mechanism of the CAP was to establish Target prices for agricultural products, as well as to guarantee minimum producer prices at which government authorities would intervene and buy the products for Community storage. The price support, variable levy, and export subsidy mechanisms of the CAP have provided strong incentives for investing in EC agriculture, leading in turn to significant productivity increases. At the same time, high EC prices have slowed the growth in consumption relative to production for many member countries. The importance of restructuring agricultural policies around the world is high on the agenda of the Uruguay Round of trade talks in the GATT. This, combined with the EC's 1992 program to remove internal barriers to trade, will pose special challenges to the current support system provided by the CAP to the EC's agricultural sector.

Keywords: Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; International Relations/Trade; Livestock Production/Industries; Productivity Analysis; Public Economics (search for similar items in EconPapers)
Pages: 32
Date: 1990-09
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:330595

DOI: 10.22004/ag.econ.330595

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