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© 1987 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Budgetary constraints and international realities in the CAP

GERRIT MEESTER

Agricultural Economics Research Institute (L.E.I.) The Hague, Netherlands
Ministerie van Landbouw en Visserij, Postbus 20401, 2500 EK The Hague, The Netherlands

Summary

The shift from net importer to net exporter marks a radical change in the economic environment within which the CAP operates. In the ‘Green Paper’, the Community‘s responsibility towards the world market has been acknowledged without drawing the necessary consequences. The proposed price reductions and co-responsibility levies may contribute to the solution of budgetary problems but have little to offer with respect to the solution of international trade conflicts and the improvement of the Community’s terms of trade. Supply control measures, which are rejected by the Commission, will have the combined effect of alleviating the budgetary burden and of reducing the unfavourable trade effects for third countries and for the Community itself.

Final remarks concern the impacts of changes in the dollar exchange rate and of the procedures with respect to the valuation of costs on the budgetary costs of the CAP.


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