ABSTRACT
The Common Agricultural Policy regulates the terms upon which the Community trades with the rest of the world. This chapter discusses the nature of the relationship and describes some of the issues which concern both the Community and other countries. The justification for such a policy stems in part from the problems of agricultural adjustment within the Community and in part from the residual character of international trade in agricultural products. The Common Agricultural Policy encourages the substitution of imports by home production. In trade discussions the Common Agricultural Policy is regarded by the Community as non-negotiable. Improving agricultural technology implies that at a particular price a higher quantity will be produced. Access to Europe’s food market may be the most important benefit to be gained for countries with large agricultural sectors compared to their industrial activity. However, agricultural issues have figured largely in negotiations within General Agreement on Tariffs and Trade.
