No single topic has raised more interest and discussion in relation to the various facets of the EC than the Common Agricultural Policy (CAP). More specifically, the true cost of the CAP particularly for Britain has been a subject of great concern for the average UK citizen, for farming and consumer organisations within Britain and for nations both inside and outside the EC. Hence the aim of this chapter is to explain and discuss the estimates that have been made regarding the true cost of the CAP especially for the UK and to extend these estimates in order to give them a proper sense of perspective. However, it should be quite obvious that such a discussion will not make any sense without a thorough understanding of the aims, mechanisms and financing of the CAP, hence the first section of this chapter is devoted to a brief discussion of these matters — readers interested in a detailed analysis within a global context should consult El-Agraa (1980a, chapter 7).
KeywordsCommon Agricultural Policy True Cost Excess Supply World Price Target Price
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