EU’s Increasing Use of Decoupled Domestic Supports in Agriculture: Implications For Developing Countries

The European Union’s (EU) reform of its Common Agricultural Policy does not include any change for subsidies to EU agricultural producers. The EU argues at the World Trade Organization that its supports are no longer trade distorting, since they are not tied to farmers’ production. According to this analytical note, these distortions have far-reaching implications for developing countries, including impacts on small farmers. The EU’s developing country partners negotiating trade agreements should protect themselves against EU-created distortions in agricultural trade.

South Centre
March 2011

To view the analytical note, click here.