CAP reforms. Economics of Food Markets Lecture 8 Alan Matthews. Objectives. To discuss the elements and significance of: The 1992 MacSharry reform [1994 conclusion of the Uruguay Round] The 1999 Agenda 2000 reform The 2003 Mid-Term Review (Luxembourg Agreement). Reform landmarks.
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Economics of Food Markets
tariffs fixed and reduced over time
Post-GATT Uruguay RoundCAP mechanisms
Domestic support capped and reduced over time
SFP aid per hectare = (Sum of farmer’s individual aid 2000-2002 / average of farmer’s eligible hectares 2000-2002) * payment rate for 2002
Deductions made for national reserve
SFP aid per hectare = (Average Sum of aid in region 2000-02 / Average eligible hectares in region 2000-02) * payment rate
Directives apply as implemented by MS