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Understanding of agricultural subsidies and agricultural subsidies in EU

  • DONG-A LAW REVIEW
  • 2014, (65), pp.551-577
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law

Choi Hye - sun 1

1전남대학교

Accredited

ABSTRACT

The agreement on CAP reform reached in June 25, 2013. While continuing to reform the CAP for past years, this reform is first try to review entire CAP. In path of CAP reform, EU solved the needs and challenges and present the future value. For that reason, EU agricultural policy has reputation of agricultural policy pioneer. According to current AOA, there are two types of agricultural subsidies largely. First is export subsidies and second one is domestic subsidies. Regarding the export subsidies, there were fierce debate. As the result, the WTO member country can give the export subsidies in very limited situation. And now agricultural negotiators almost agree that export subsidies will be eliminated. Among the various types of domestic subsidies, Blue Box, Green Box and Amber Box are the important issues. In DDA agricultural negotiation, changing about regulations of Blue Box is one of the most critical matter. By the latest modality, requirements for Blue Box will be stricter than now and new type of Blue box will be introduced. Green Box has not trade distorted effects or minor effects. AOA Annex 2 prescribe the conditions and the types of Green Box. Differently now, DDA agricultural negotiators discuss the ways to strengthen the requirements for developed countries's Green box. On the contrary that, developing countries could have more flexibility on that part. Amber Box is most harmful in the international trade of agricultural products. The WTO member country should reduce the total amount of payment. If DDA agricultural negotiation would be concluded, countries who pay more have to reduce more. In 2013 reform of CAP, EU introduced various groundbreaking changes in part of agricultural subsidies. Introducing of Basic Payment Scheme, Green Payment, Young Farmers Scheme, Redistributive Payment, Small Farmers Scheme are representative changes. By having that schemes, EU try to resolve the imbalances between farmers and achieve the new goals of CAP, more equitable and greener and strengthen rural development.

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