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History and lessons from the
European CAP
García Azcárate Tomás
Brussels Euro-Med seminar 14 January 2014
E-mail: tomasgarciaazcarate@gmail.com
http://tomasgarciaazcarate.com
We had and have good objectives
• to increase agricultural productivity;
• to ensure a fair standard of living for the
agricultural community
• to stabilise markets;
• to assure the availability of supplies;
• to ensure that supplies reach consumers at
reasonable prices
• Plus Environment, cohesion, development …

2
We made 3 initial mistakes
• Non-limited buying guaranties for main products
• At high prices
• Border protection imbalance: low or no duties on
non-European products such as oilseeds, manioc,
corn gluten feed …

3
Which consequences?
•
•
•
•

Farmers not market oriented
Increase of production: + 2 MT a year for cereals
Decrease of consumption: - 2 MT each year
Animal production concentrated on some regions
close to the ports: environmental, sanitary and
regional problems
• Farming intensification: maximizing yields =
maximizing income
• Major crisis: Mad Cow, non-drinking water, ...
4
First CAP reforms: A step by step
approach
• Price decrease. Internal rebalancing
• Direct payments as political oil
• To change the economic logic: max of production
no more max income
• Freedom to farm
• To build new instruments: agrienvironment
support and rural development

5
Some relevant dates I
• 1952-1991: First CAP. Mainly by farmers for
farmers. Mainly consumer support.
• 1992: Payments for farmers more transparent.
More public debate: environment, animal welfare,
social issues
• 1992: New instrument to support farmers for
public goods: agri-environmental support.

6
Some relevant dates II
• Agenda 2000: From structural policy to rural
development policy. First cross-compliance;
voluntary modulation
• 2003/2004: Decoupling and conditionality: food
safety, animal welfare, environment.

7
Today: the future on the markets
• To build a new legitimacy for public support;
based on public goods
• To manage economic, geographic, historic,
cultural diversities of societies, rural areas,
consumers
• From an agricultural policy to a food and
territorial policy
• Rebalancing the food chain: adding value and
sharing it fairly
8
If you want to know more …
• DG AGRI webpage:
http://ec.europa.eu/agriculture/index_en.htm
• My webpage:
http://tomasgarciaazcarate.com
• Twitter:
Tgarciaazcarate
• Linkedin and Facebook:
Tomas Garcia Azcarate
9
If you want to know more …
• DG AGRI webpage:
http://ec.europa.eu/agriculture/index_en.htm
• My webpage:
http://tomasgarciaazcarate.com
• Twitter:
Tgarciaazcarate
• Linkedin and Facebook:
Tomas Garcia Azcarate
9

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Some lessons from the CAP, yesterday, today and tomorrow

  • 1. History and lessons from the European CAP García Azcárate Tomás Brussels Euro-Med seminar 14 January 2014 E-mail: tomasgarciaazcarate@gmail.com http://tomasgarciaazcarate.com
  • 2. We had and have good objectives • to increase agricultural productivity; • to ensure a fair standard of living for the agricultural community • to stabilise markets; • to assure the availability of supplies; • to ensure that supplies reach consumers at reasonable prices • Plus Environment, cohesion, development … 2
  • 3. We made 3 initial mistakes • Non-limited buying guaranties for main products • At high prices • Border protection imbalance: low or no duties on non-European products such as oilseeds, manioc, corn gluten feed … 3
  • 4. Which consequences? • • • • Farmers not market oriented Increase of production: + 2 MT a year for cereals Decrease of consumption: - 2 MT each year Animal production concentrated on some regions close to the ports: environmental, sanitary and regional problems • Farming intensification: maximizing yields = maximizing income • Major crisis: Mad Cow, non-drinking water, ... 4
  • 5. First CAP reforms: A step by step approach • Price decrease. Internal rebalancing • Direct payments as political oil • To change the economic logic: max of production no more max income • Freedom to farm • To build new instruments: agrienvironment support and rural development 5
  • 6. Some relevant dates I • 1952-1991: First CAP. Mainly by farmers for farmers. Mainly consumer support. • 1992: Payments for farmers more transparent. More public debate: environment, animal welfare, social issues • 1992: New instrument to support farmers for public goods: agri-environmental support. 6
  • 7. Some relevant dates II • Agenda 2000: From structural policy to rural development policy. First cross-compliance; voluntary modulation • 2003/2004: Decoupling and conditionality: food safety, animal welfare, environment. 7
  • 8. Today: the future on the markets • To build a new legitimacy for public support; based on public goods • To manage economic, geographic, historic, cultural diversities of societies, rural areas, consumers • From an agricultural policy to a food and territorial policy • Rebalancing the food chain: adding value and sharing it fairly 8
  • 9. If you want to know more … • DG AGRI webpage: http://ec.europa.eu/agriculture/index_en.htm • My webpage: http://tomasgarciaazcarate.com • Twitter: Tgarciaazcarate • Linkedin and Facebook: Tomas Garcia Azcarate 9
  • 10. If you want to know more … • DG AGRI webpage: http://ec.europa.eu/agriculture/index_en.htm • My webpage: http://tomasgarciaazcarate.com • Twitter: Tgarciaazcarate • Linkedin and Facebook: Tomas Garcia Azcarate 9