Eu's Common Agricultural Policy Research

The Common Agricultural Policy (CAP) was the first common policy of European Economic Community, which was the predecessor of European Union. The CAP and the Customs Union have been regarded as the two pillars of European economic integration. At the beginning, the CAP promoted the agricultural development of the member countries and balanced the members' contradictions about profits. With the high speech development of European integration, the development of the CAP is concerned very much. In addition to it, the reform of the CAP has important influence to coordinate the differences of agriculture trade and to promote the trade liberalization of agricultural products. It made the CAP become the important sector to WTO to go on the agricultural negotiation successfully. Furthermore, the experience drawn from the implement of the CAP can be used by our country's agricultural development for reference.This article will explain the basic meaning of the CAP by analyzing the background of it; describe the reform structure in different periods by analyzing the main reform reasons in each period; research the challenge brought by the agriculture negotiations of WTO in the new century and the developing prospect; the article drew some inspirations to our country's agriculture development from the reform in the last.In the author's opinions, the CAP of European Union is successful in periods. It has the ability to adjust itself and adapt to the challenges it faced. Since the CAP of European Union was carried out from 1962, it had experienced some tests. In the early period of the policy enforcement, the CAP played a positive role to change the situation of agricultural supply shortage in EU by taking interior price support policy. It made EU changed from the total agricultural import community to the export community. On the other hand, the CAP of European Union faced heavy budget burden and financial expenses with the over surplus of agriculture products. It began to changing from the promotion of production to dealing with the surplus agricultureproducts. The reform in 1992 touched the core of the CAP with direct the support policy of market price to the support policy of producer income. Then the CAP of European Union began to adjusting in different degrees to fit the WTO's agriculture negotiation and the development of EU's eastern expansion. It strengthened the continuous forces of agriculture in the time of reducing the price support and made the development of village as the second pillar of the CAP. These reforms reflected the adjusting abilities of the CAP to the changing environment both of interior and. exterior.