The EU’s Common Agricultural Policy and third world countries

Abstract

The Common Agricultural Policy of the European Union is one of the most important policies and accounts for almost 40 per cent of the current Union budget. In this aspect, this policy plays a crucial role as it has been affecting developing countries ever since its implementation in 1957. Nonetheless, the literature assessing the Common Agricultural Policy’s effect in this field is minimal. Parallel to this, the literature review gives an account of the history and developments this policy went through over the years. It follows giving an overview of the current trade policy as well to project a coherent overview of the development of both. This provides the basis for the analysis to evaluate how the relationship of both affects developing countries. The first research question “How has the CAP developed since its introduction?’, is carried out within the literature review. The literature review defines the main concepts and evaluates the relevant sources to this study. First, history and main developments of the EU’s Common Agricultural Policy are discussed. Then, the reference to third world countries, it is narrowed down to developing countries who are agricultural exporters to the EU. Lastly, the approach taken is to outline the current trade policy between the EU and developing countries to form the base for the analysis. The main research question, “What are the effects of the CAP on third world agricultural exporters?” adopts a qualitative approach. This is answered within the analysis, where these findings are interpreted in-depth using case studies to highlight each particular effect of the CAP on developing countries. It presents and discusses the results and answers the second research question. Overall, the results provide a negative assessment of the EU’s Common Agricultural Policy, and its effects vary across developing countries.