- 26 Apr 2005 15:02
#624275
Not sure if this has been discussed before, but the CAP is a pet hate of mine
Despite being very pro-european on a number of matters, there is one issue that really gets me angry about the EU, namely the CAP and the utter hypocrisy of certain countries in Europe who insist on protecting and blocking reform of this policy while at the same time attempting to portray themselves as generous in aiding developing countries.
The CAP eats up roughly 50% of the current EU Budget through its price subsidies, it is the most obvious form of protectionism still apparent in the EU, in a sector which is crucial for the least developed countries to encourage thier own economic growth. Furthermore most of the subsidies go to large agri-businesses and sugar Barons in France and Germany. Something like 7% of the biggest farms account for 50% of where the CAP funds go, many of these farms are owned by multi-nationals and the EU is therefore indirectly subsidising these companies. Considering it is commited in its trade and development policy to reducing tariffs, perhaps it should also reduce its export subsidies for agricultural goods.
Here is the blurb from the webstite: Trade
Despite being very pro-european on a number of matters, there is one issue that really gets me angry about the EU, namely the CAP and the utter hypocrisy of certain countries in Europe who insist on protecting and blocking reform of this policy while at the same time attempting to portray themselves as generous in aiding developing countries.
The CAP eats up roughly 50% of the current EU Budget through its price subsidies, it is the most obvious form of protectionism still apparent in the EU, in a sector which is crucial for the least developed countries to encourage thier own economic growth. Furthermore most of the subsidies go to large agri-businesses and sugar Barons in France and Germany. Something like 7% of the biggest farms account for 50% of where the CAP funds go, many of these farms are owned by multi-nationals and the EU is therefore indirectly subsidising these companies. Considering it is commited in its trade and development policy to reducing tariffs, perhaps it should also reduce its export subsidies for agricultural goods.
Here is the blurb from the webstite: Trade
Increased trade boosts world growth to everybody’s advantage. It brings consumers a wider range of products to choose from. Competition between imports and local products lowers prices and raises quality. Liberalised trade enables the most efficient producers to compete fairly with rivals in other countries, whose governments have to cut import duties used to protect national firms.Agriculture
Born 50 years ago when the founder members of the EU had not long emerged from a decade or more of food shortages, the Common Agricultural Policy (CAP) began by subsidising production of basic foodstuffs in the interests of self-sufficiency. The CAP of today, on the other hand, emphasises direct payments to farmers as the best way of guaranteeing farm incomes, food safety and quality, and environmentally sustainable production.