The Effects of the CAP on International Trade in Poultry Meat

Julian Alston

European Review of Agricultural Economics, 1986, vol. 13, issue 2, 217-31

Abstract: The Common Agricultural Policy (CAP) increases poultry production costs, prohibits poultry imports, and subsidizes poultry exports. An equilibrium displacement model is applied to analyze the effects of these policies. In the absence of the CAP it is likely that the European Community (EC) would be a net importer rather than a major exporter of poultry. The large implicit tax on EC poultry consumers is an inefficient means of transferring income to producers, and the policy has significant net costs. The displacement of U.S. exports, mainly to the Middle East, involves substantial cost to U.S. producers but these are almo st entirely offset by gains to U.S. consumers. Copyright 1986 by Oxford University Press.

Date: 1986
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