Since then, the CAP has now changed dramatically after three successive reforms, the last one taking place in 2003 and being progressively implemented. According to the Common Agricultural Policy, with regard to developing countries the EU is committed to the principle of special and differential treatment. It appeals to all developed and the wealthiest developing countries to provide significant trade preferences to developing countries and it pleads for making these trade preferences more stable and more predictable. On domestic support, the EU is prepared to accommodate concerns of developing countries on food security, rural development and rural poverty by adjusting the "green box"(Harrison et al, 1995). In this paper, we would be discussing the effect of Common Agricultural Policy on developing countries to arrive at a conclusion whether CAP helps or harms the developing countries.
When the EU was formed in 1958, two important conditions already existed. Firstly, all the countries that established the EU or joined it before 2004 had already been protecting their farmers. Secondly, these countries had signed the GATT that asked to combine agricultural protection with supply management (Polaski, 2006). ...Show more