True Friends and Enemies of Reforming the Common Agricultural Policy

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1992-03-01
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Harrison, Glenn
Rutstrom, E.
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Center for Agricultural and Rural Development

The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.

CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.

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Center for Agricultural and Rural Development
Abstract

We employ an empirical general equilibrium model of the CAP to determine which factors and countries would be expected to be opposed to or support reform of the CAP. The objective is to determine who the "friends" and "enemies" of the CAP are. The analysis studies the extent to which lobbying activity by these interested parties could be expected to encourage or discourage internal EC reform of the CAP. Several alternative polices to reform the CAP are evaluated in this manner, so as to determine if one or other set of policies has greater chance of being accepted. Specifically, we study the recent MacSharry proposals for reform, as well as the stated negotiating positions presented at the GATT. The result will be a summary assessment of the relative politico-economic acceptability of these reform proposals within the EC. Our results lead to a very simple policy conclusion. Given the se of policy packages considered here, there is little doubt that the EC is most inclined to adopt the full MacSharry proposal. This suggests that pushing the U.S. or Helstrom proposals is not likely to lead to EC acceptance unless the EC receives significant compensation from other aspects of the multilateral trade negotiations.

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Wed Jan 01 00:00:00 UTC 1992
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