ABSTRACT

In June 1990, after several years of tinkering around the margins of agricultural policy, the Riksdag, the Swedish parliament, enacted a fundamental marketoriented reform. Its core elements are the following:

• Phased deregulation of domestic markets over a five-year period, eliminating price supports as the principal means of assisting farmers. • Substitution of fixed-and lower-tariffs for variable import levies; which has insulated producers from international competition. • Termination of export subsidies for any surpluses produced at a cost above international market prices. • A series of measures directly targeted to agriculture's noncommodity or "public goods" benefits.