ECONOMIC EFFECTS OF THE EU’S COMMON AGRICULTURAL POLICY

Abstract

Since its initiation, the Common Agricultural policy has made a profile as one of the most important policies in the EU. This paper will give an outline of the historic influences over CAP as well as the process of further reforms in order to gain a sustainable agricultural production. The economic effects, which were supported by subsidies and import limitations, have led the European union towards self-sufficiency, which certainly had an implication on the world trade flows. As a result of these situations, changes were necessary, in order to create a successful policy for reasonable leadership in agricultural industry through the maze of enlargement and trade negotiations guaranteeing healthy and safe food supply for the consumers and industries that rely on agricultural products. The economic effects of the policy are analyzed and the future impact on Macedonia is discussed