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I'm skeptical about the claim that the CAP doesn't hurt developing countries. If this is true, why did many Africans during and prior to the G8 point to European and US agricultural subsidies as one of the biggest barriers to African economic growth?

This is the crucial issue for me. If agricultural subsidies in Europe (through CAP) and the US are hurting the developing world, they should be repealed. I really don't care whether France or the UK or the US or Poland or Spain or Australia or Brazil do better or worse, because even the poorest of those countries are not facing mass starvation and economic stagnation.

by Cascadia Progressive on Fri Jul 15th, 2005 at 03:09:30 PM EST
The EU has made a lot of effort in recent years to stop the worst effects of its ag subsidies on world markets, and there are real policies to open the EU to the poorest countries.

  • no more dumping of surplus production on the export markets with massive subsidies. Export subsidies have been really reduced (see the graphs in my earlier diary "facts and figures about the CAP")

  • subsidies have been mostly decoupled from surface or volumes, so as not to encourage extra production - they are now more and more linked to environmental criteria and that "stewardship" fluff and do not encourage production

  • the EU is the biggest importer by far of agricultural products

The USA under Bush have gone the other diurection, with new production-linked subsidies. The most egregious example is that of cotton. Sugar is also a bad offender, but there both the US and Europe are guilty.

At least the EU is going in the right direction. Not fast enough, but at least in the right direction.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Jul 15th, 2005 at 03:26:36 PM EST
[ Parent ]
Not fast enough, but at least in the right direction.

Isn't this the EU's official motto?
by Colman (colman at eurotrib.com) on Sat Jul 16th, 2005 at 01:51:19 PM EST
[ Parent ]

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