2003 EU CAP reforms: A step forward on a long journey

Abstract

Reforms to the European Union's Common Agricultural Policy (CAP) agreed recently will alter the forms in which much of agricultural support is provided, but are likely to make the EU agricultural support regime only slightly less negative for world markets. • The reforms do not directly address export subsidies and market access, and therefore provide only a partial platform for multilateral trade negotiations under the World Trade Organisation (WTO). A growing European Union means that disciplines on agricultural protection through multilateral agreements are more important than ever. • Changing the forms of support will achieve only limited reductions in agricultural distortions. Making marked reductions in the levels of support is the only way to seriously reduce distortions.