Common Agricultural Policy of the European Community: A Blessing or a Curse for Developing Countries

摘要

The European Community is the major player in global agricultural trade. Not only is it the leading importer of agricultural goods, it is also the dominant exporter of a number of agricultural products. Further, its export dominance is growing over time. It is, therefore, imperative that policymakers in developing countries and those that advise them on agricultural matters understand the implications of the EC's common agricultural policy on them. There are two major types of effects. On the one hand, as exporters of agricultural products, developing countries may lose their EC market share as the level of self-sufficiency of the EC increases or they may lose market share in third markets in competition with subsidized EC exports. On the other hand, as importers of certain agricultural products, some developing countries may gain by buying agricultural goods on the international market that are made cheaper and more abundant by EC agricultural surpluses. This paper spells out which commodities fit into each category in addition to explaining how the common Agriculture Policy operates. (Copyright (c) 1984 The International Bank for Reconstruction and Development/The World Bank.)