A Bond Scheme for Common Agricultural Policy Reform by Alan Swinbank, Richard Tranter

By Alan Swinbank, Richard Tranter

Annotation. the typical Agricultural coverage (CAP) is at an deadlock. whereas it truly is acknowledged that present rules will not be tenable, all fresh reform plans were condemned as unacceptable. despite the fact that, a 2bond scheme3, as a part of reform that will pay extra realization to societys aspirations for the surroundings and rural improvement, bargains a fashion ahead. This publication demystifies the bond scheme idea and explores issues expressed by way of farmers and coverage makers. Written by way of economists, a political scientist and a training flesh presser, it deals infrequent insights into ecu farm coverage.

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Extra resources for A Bond Scheme for Common Agricultural Policy Reform

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C. (eds) The Reform of the Common Agricultural Policy. Macmillan, London. World Trade Organization (1999) Committee on Agriculture. Notification from the European Communities. G/AG/N/EEC/17. WTO, Geneva, Switzerland. World Trade Organization (2000a) Committee on Agriculture, Special Session. Note on Domestic Support Reform Negotiations on Agriculture. Submission from the United States. G/AG/NG/W/17. WTO, Geneva, Switzerland. World Trade Organization (2000b) Committee on Agriculture, Special Session.

5. 1 Source: EU submissions to the WTO, as indicated by the document references in the bottom row For the purposes of this study, the most important exemptions from the AMS calculations and constraints are the so-called green box measures listed in Annex 2 to the Agreement on Agriculture, and the so-called blue box measures defined in Article 6(5). ) Annex 2, with its green box measures, was a central feature of the Dunkel text of December 1991; but paragraph 5 of Article 6 was a completely new insert by the Americans and the Europeans at Blair House (Swinbank and Tanner, 1996).

This would tend to ‘lock-in’ CAP support in the new Member States, as it had in EU-15, making future reform of the CAP more difficult, as investment decisions would have been taken on the expectation of a continuation of support (Daugbjerg and Swinbank, 2004). Indeed to some extent this had already happened, as a number 32 A Bond Scheme for CAP Reform of applicant states had increased their levels of farm support to align with the existing CAP. In the event, and after a long prevarication, in January 2002 the Commission (2002a) proposed that direct payments should be extended to the new Member States, but in a phased manner starting at 25% of the payment level in EU-15 in 2004, and rising to the full EU-15 payment level after 10 years.

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