- Common Agricultural Policy
- (CAP)The CAP is a system of European Union (EU) agricultural subsidies. Its origins are to be found in an agreement made between France and West Germany during the drafting of the Treaty of Rome which provided for guaranteed markets for French agricultural products as a quid pro quo for wider markets for German manufactured goods. Formalised in 1962, the CAP was devised at a time when there were still memories of wartime food shortages, hence the emphasis upon encouraging agricultural productivity. However, 20 years later, increased efficiency, in part brought about by technical progress, led to the creation of huge, unsaleable surpluses (the much-derided ‘wine lakes’ and ‘butter mountains’), which had to be placed in storage and often sold off cheaply to countries such as the old Soviet Union. Subsequent reforms of the increasingly costly CAP were concerned to cut production by means of set-aside schemes, reductions in guaranteed prices and a general move away from subsidising production towards instead making direct payments to farmers in need of financial assistance and a greater emphasis on land stewardship. As a result of such moves, EU spending on agriculture has been reduced to around 44 per cent of overall expenditure. The CAP was never popular in Britain, being seen as costly, wasteful and inefficient. Britain has a much smaller agrarian sector than many European countries, so that it does not benefit from high agricultural spending.
Glossary of UK Government and Politics . 2013.
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Common Agricultural Policy — ˌCommon Agriˌcultural ˈPolicy abbreviation CAP noun ECONOMICS FARMING in the European Union, a system of controlling the production and sale of farm produce, especially by paying government money to farmers to produce certain crops: • The… … Financial and business terms
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Common Agricultural Policy — Common Ag|ri|cul|tu|ral Pol|i|cy, the the full name of the ↑cap … Dictionary of contemporary English
Common Agricultural Policy — CAP A policy set up by the European Economic Community to support free trade within the Common Market and to protect farmers in the member states. The European Commission fixes a threshold price, below which cereals may not be imported into the… … Big dictionary of business and management
Common Agricultural Policy — (CAP) Originally created with three main components: a single market for agricultural products, with common prices; a common external tariff (CET) on agricultural imports; and common financial responsibility. Its core is the guaranteed price… … Glossary of the European Union and European Communities
Common Agricultural Policy — (also the CAP) the policy introduced in 1962 by the European Community, now the European Union, to protect European farmers. Under the system, farmers were paid even if they produced food that was not needed. Too much food was produced as a… … Universalium
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Common Agricultural Policy — (CAP) the system of organization of farming in the European Union (EU). http://europa.eu/pol/agr/index en.htm … Geography glossary
Common Agricultural Policy — /ˌkɒmən ˌægrɪ kʌltʃ(ə)rəl ˌpɒlɪsi/ noun an agreement between members of the EU to protect farmers in EU countries by paying subsidies to fix the prices of farm produce. Abbreviation CAP … Dictionary of banking and finance