Matthews, Alan. 'Symposium on Ireland, Europe and the Third World: Ireland, the Common Agricultural Policy and the less developed countries'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland,Vol. XXV No. 2b, 1984/1985, pp149-158
Journal of The Statistical and Social Inquiry Society of Ireland Vol. XXV No. 2b 1984/1985
The price provisions of the Common Agricultural Policy (CAP) are designed to transfer
income to European farmers and to maintain a secure supply of food for European
consumers. The consequences of this policy for countries outside the European
Community (EC) have become increasingly contentious now that the EC has passed the
point of self sufficiency for many temperate zone food products and has become a major
exporter, with the aid of export subsidies, to world markets. These consequences are of
two kinds (a) CAP protection leads to lower prices on world markets for CAP products,
though its effect on the prices of substitutes for CAP products (e g oilseeds) is less clear,
(b) CAP protection increases the instability of world market prices.
EC agricultural protection is usually seen as damaging to the interests of the less
developed countries (Valdes and Zietz, 1980, Fitzpatnck, 1982), though more recently
there is a growing realisation that many importing LDCs benefit from the availability of
cheaper food supplies on the world market (Bale and Koester, 1984, Matthews, 1985).
The impact of the CAP on LDCs is of special interest to Ireland, given the importance of
the agricultural sector and the role of agricultural exports here.
This paper presents the results of some new calculations of the impact of the CAP on
LDCs, and discusses their implications for Irish development co operation policy.
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