Prospective changes in the EU’s cereal market

Jámbor, Attila

Keywords: EU cereal market, WTO negotiation, export support, intervention

The cereal section of the EU agricultural system is a decisive factor ever since the conception of CAP. The present support policy of several decades standing seems to be tottering in these days due to WTO negotiations and internal problems, enforcing changes upon the section participants. In the centre of latest reform plans is the abolition of export subsidies, whose effects would only be felt long term. In this article we aim to describe the possible policy decisions available to the EU with respect to such plans and their consequences. According to our study theoretically the EU has three options in decision making with respect to the cereal market, but only one of these, the policy of gradual change over is feasible. Undoubtedly all changes take a long time to accomplish at not insignificant costs. An appropriate decision may help not only the original 15 members of EU but also the newly joined members as it would help to improve competitiveness and the chances of entry onto the market place.

Full article