This website uses cookies to ensure you have the best experience. Learn more

Trade Protection In Agriculture By European Union And The United States Results In Gains For Some And Loss For Others. Evaluate The Impact Of Us Farm Policy Or Eu Common Agriculture Policy On Developing Countries.

2328 words - 9 pages

Question 2Trade protection in agriculture by European Union and the United States results in gains for some and loss for others. Evaluate the impact of US Farm Policy or EU Common Agriculture Policy on developing countries.The European Union (EU) is the agricultural leader among developed countries in international trade. It is well-known as a world's major food exporter. In 2010, for example, its agricultural exports, mainly processed foods like beverages, essential oils and food preparations, reached the record level of €91 billion (Fritz, 2011). Nevertheless, its position as the world's largest importer, mainly from developing countries, is far more significant. This was proven where around 72% of its agricultural imports are originated from developing countries, which accounted on average US$83 billion worth of agricultural products over the period of 2007 to 2009. This rate is higher than the combined imports of the United States, Japan, Canada, Australia and New Zealand from developing countries, which is around 38% and accounted on average US$64 billion for the same period (Matthews, 2010a; European Commission, 2010). For instance, soya, the single most important agricultural commodity imported into the EU, is mainly supplied by Brazil and Argentina. Other important tropical products include coffee, bananas, cocoa beans and palm oil supplied almost entirely by developing countries as well (Fritz, 2011).The EU's Common Agricultural Policy (CAP) was introduced in the early 1960s at a time where farming accounted for a large share of Europe's GDP and population (Bureau & Matthews, 2005). The purpose of forming this policy is to promote agriculture throughout the EU by influencing prices, output and farmers' incomes, including provision to protect the rural and agricultural commodity. Apparently, the CAP is introduced based on two pillars, with each pillar funding different policies in different ways. Pillar 1 comprises both direct payments to farmers and market management measures. In contrast, Pillar 2 emphasizes on improving the structural and environmental performance of agriculture, and promoting local/rural development (Cantore, Page & Willem, 2011). However, after years of ineffective measures, the CAP has undergone major reforms to help reduce market distortions, and thus to be more acceptable at the international level. Since then, the CAP has now changed dramatically after four successive reforms - the MacSharry Reforms in 1992, the Agenda 2000 Reforms, the Fischler Reforms 2003 and the most recent Health Check Reform 2008 (Cantore, Kennan & Page, 2011).In view of the EU's role as a major exporter and importer, the CAP could arguably play a role not only in domestic, but also in international agricultural markets. Accordingly, any effect of the CAP reform on the EU's position in multilateral trade negotiations may have impacts on the trade and development opportunities of developing countries (Cantore, Kennan &...

Find Another Essay On Trade protection in agriculture by European Union and the United States results in gains for some and loss for others. Evaluate the impact of US Farm Policy or EU Common Agriculture Policy on developing countries.

European Union Military And The United States

6431 words - 26 pages ." Realist scholars have debated this view against its opposite that stability rises from a balance of power, be it bipolar or multipolar, for quite some time.The way in which the debate is framed is a particularly useful of way of analyzing the impulses and interactions between the United States and Europe since the one has become the hegemonic power. On the one hand, balance of power would hold that the European Union should rise as a counteragent

The Discovery and Impact of Agriculture

659 words - 3 pages made a fundamental impact in today’s modern world. Early civilizations greatly utilized this new development by increasing their presence and influence throughout the world. Because agriculture evolved, the population increased, villages and towns emerged, and urban life developed during ancient society. The origin of agriculture dates back to the Neolithic era. This era is often referred to as the “new stone age” because of the early stages of

Enlargement of the European Union (EU): The Implications for Business

1840 words - 7 pages focus on how the liberalisation, migration of labour and integration of markets for goods, services and capital has affected business. In recent years the enlargement of the European Union has become a highly discussed subject. Much of the discussion was centred around the possible new business opportunities that would arise in the new EU Member States for businesses in the ‘old’ EU Member States. It was believed that a consequence of the

Inequality in the European Union (EU)

1927 words - 8 pages Cumulative European Union (EU) enlargements to include relatively less developed countries such as Bulgaria and Romania, along with the possibility of future EU status being granted to Turkey and Albania (EC, 2011), raises further questions about inequality in the European Union. The global recession has bought the issue of labour market models and resulting inequities back into the forefront political discourse, as government cutbacks

Political Economy of the European Union: Outline the major features of the Common Agricultural Policy as it currently operates. Consider the problems posed for the policy by the Enlargement

878 words - 4 pages . (Link 1, European Commission, 2004).In the first one, one finds a variety of regimes which include those offering a high degree of market support as well as those offering only minimal support. Some regimes rely heavily on classic market intervention mechanisms, fixing guaranteed minimum prices within the EU and maintaining these by intervention buying when markets get oversupplied or by applying quotas on production, and applying import tariffs

Environmental Policy of the European Union

3083 words - 12 pages independent in its measures and maintained control over their implementation them by its own executive body thus limiting public access to the environmental policies. Furthermore, the public also was less active in shaping as common EU green policy and the local policies as well. These results reveal the fact that the problems was not only in inability of the European Commission to push the member-states for harmonization of these policies. There existed

United States Agriculture

3133 words - 13 pages Agriculture was the most important economic activity in America from the founding of Virginia in 1607 to about 1890. Although farming declined rapidly in relative economic importance in the twentieth century, U.S. agriculture continued to be the most efficient and productive in the world. Its success rested on abundant fertile soil, a moderate climate, the ease of private land ownership, growing markets for farm produce at home and abroad, and


4055 words - 17 pages such commitment; or (d) the individual bound by an authoritative or some other obligation to restrain the use of the trade secret broke such commitment."[footnoteRef:8] [6: Ladas Parry, TRADE SECRETS: CHANGES IN THE LAW ON PROTECTION OF TRADE SECRETS IN THE UNITED STATES AND EUROPEAN UNION, 21 September 2016] [7: 18 U.S

The Drug Policy in the United States

2990 words - 12 pages reasons for trying to get drugs off of the streets in the United States are obvious. Having drugs in the United States has raised the amount of crime that takes place, and has also had some very damaging affects on the young people of this country. By making drugs illegal and trying to rid the U.S. of them the government is attempting to lower crime rates especially in light of the fact that “research on the relationship

The Common Foreign And Security Policy Of The EU At The Beginning Of The 21st Century

964 words - 4 pages instability and sometimes even panic on the world financial markets and thus affect many people's lives not necessarily directly at the place of the very problem.I believe these are the main reasons, why the Union establishes such a kind of political cooperation. Today, even "The European security and defence policy" as a part of the CFSP is implemented. It could lead to a common defence and military cooperation of the Member States in a near future. The Fifteen now declares that Europe's defence needs a change and they are decided to take responsibility for their own security increasingly into their own hands.

Policy of the United States

771 words - 4 pages Policy Of The United States As the United States strengthens border-security measures for greater protection against terrorist attacks, "we must do it through technology and an appreciation of our trade-dependent communities along the border," says Asa Hutchinson, under secretary of homeland security. Speaking May 7 before the Association of American Chambers of Commerce in Latin America, Hutchinson outlined elements of the Bush

Similar Essays

Emigration From Europe To The United States Of America In 1880 1930 And Its Impact On The Foreign Policy Of The Countries

1706 words - 7 pages period. It caused the higher rate of import in European countries and supported the trade between those states which had to do with the foreign policy as well. By setting the acts which limited immigration for particular groups such as anarchists and mentally-disordered, the USA persuaded to stay those in Europe which affected the health and political stability of the nations involved into the process. For example, eastward flows of capital and

Integration In The Eu And Monetary Policy

2438 words - 10 pages goals, or convergence requirements, for the countries to follow. For example, inflation could not be 1.5 % above the average lowest member states’ inflation, and a limit was set on public-sector deficit and public debt. By 1998, eleven countries satisfied the criteria and became the European Monetary Union (EMU). Finally on January 1st of 1999, the Euro was adopted by the EMU members. The “Eurosystem,” or European System of Central Banks

Market Competition: Implications For Healthcare Policy In The United States

6967 words - 28 pages on a person's desire to gain from the trade of goods and services. By competing in the marketplace one has the opportunity to improve their welfare and the welfare of society without reducing the welfare of others. This assumes there is no significant consumption externalities associated with one's consumption of goods or services.Based upon economic theory, engaging in open market competition would be beneficial in countries with universal

Agriculture In More And Less Developed Countries

2105 words - 8 pages into the less developed countries, where the output of the farm is used on or near the farm where it is produced, and the more developed countries, where the farmer sells the crops and livestock. There are some major differences between what we do in the United States and what others do in other countries concerning agriculture. As one can see, agriculture is a very important way of life for many different people all over the world. The uses of