An Assessment of Agricultural Trade Liberalization by the European Union in the Context of the WTO

Abstract

The EU's common agricultural policy (CAP) subsidizes exports, limits import, and controls production. These policies importantly affect production, consumption, trade and economic welfare of EU members and have systemic implications especially for developing countries and economies in transition. This paper reviews the evolution and present status of the EU's agricultural policies and assesses efforts at reform within the context of the WTO, including notably the Uruguay Round Agreement on Agriculture. It thereby provides a framework for evaluating future plans for liberalizing the EU's agricultural sector.

JEL Classification: F13