ABSTRACT
This chapter examines the issue of the surplus disposal of European cereals and the growing European trade in cereals. The establishment of the Common Agricultural Policy (CAP) in 1962 with its protectionist objectives had profound implications for American agricultural trade, particularly in the European market itself, but also for the world market as a whole. European food aid has developed into new initiatives and policy areas such as triangular transactions, strategic regional and security stock programmes, as well as broader food security policies. These approaches are favoured by the Community as a means to achieve economic development and liberalised trade through encouraging economic integration in developing world. The European trade in cereals has risen from 17 million tonnes in 1969 to over 48 million tonnes in 1985, increasing its world market share considerably. Like France, both Italy and Germany show a steady growth in their respective cereals trade. The United Kingdom since 1981 has shown a stronger propensity to export.
