The CAP, yesterday, today and tomorrow II. main agricultural policies instruments

1. The CAP, yesterday, today and tomorow
2015/2016
SBSEM and European Commission
2 Main tools to intervene in the
agricultural markets?
Tomas Garcia Azcarate

2. 4 possible targets
• To increase supply
• To limit supply
• To increase demand
• To limit demand

3. To increase supply: medium and
long term
• Guaranteed producer price
• High guaranteed producer price
• Subsidy per kilo of product
• Investment subsidies
• Subsidy for agricultural insurance

5. To increase supply: short term
• Reduced import duties
• Subsidy for imported products
• Selling from intervention

6. To limit supply: medium and long
term
• Production quotas
• Subsidy for disinvestment
• Remove or decrease guaranteed prices

7. To limit supply: short term
• Border controls: sanitary controls, taxes
• Products withdrawals
• Veterinary measures: Herod premium, killing
animals
• Set aside
• Marketing standards
• Public intervention buying; private storage
• Subsidy for processed products

8. An ugly tomato

10. To increase demand
• Long and short term: promotion campaigns
• Subsidies on consumer goods
• Free distribution
• Food aid
• Export subsidies
• Export credits
• State trading enterprises
•

11. To limit demand
• Taxes on consumer goods
• Taxes on exported products
• Export embargos

12. 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: Tomas Garcia Azcarate
• Facebook: Tomas Garcia Azcarate