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The Negative Effects of the CAP on the EU

 

            An Analysis of the Negative Effects of the Common Agricultural Policy of the European Union.
            
             In the wake of an increasingly global economy, one that has seen the emergence of large trade blocs and common markets, the nations of the world have been competitively forced into becoming more economically integrated year after year. In light of hundreds of years of consumer theory, this would almost certainly lead one to a conclusion of necessarily lower prices and more efficient production on almost all products. However, as is the case in many nations, the European Union has succeeded in creating an artificial market for agricultural products through the implementation and use of a Common Agricultural Policy, which has had grave implications for producers and consumers alike. It is the focus of this analysis to outline the framework of the Common Agricultural Policy of the European Union, to analyze strictly the negative effects it creates on welfare, and to attempt to exhibit such effects through an exclusive examination of Great Britain's struggle with the Common Agricultural Policy.
             Background of the Common Agricultural Policy.
             The Common Agricultural Policy (CAP) is a policy, set forth by the European Union (EU), which is comprised of a set of rules that regulate the production, trade, and processing of agricultural products. The CAP currently accounts for almost fifty percent of the EU budget, however this number continues to decrease over the years. The CAP is significant in that it symbolizes Europe's switch from sovereignty on a national level to a European level.
             The Treaty of Rome, in July 1958, formed the foundation for a unified Europe via the implementation of the general objectives for the Common Agricultural Policy. The CAP was established as a means of rectifying the deficit in food production within Europe through supporting internal prices and incomes. The Common Agricultural Policy succeeded in realizing its initial goals of increased production and productivity, stabilized markets, secured supplies, and farmer protection.


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