The Impact of European Agricultural Subsidies on the Global Food Market : Why a reform of the Common Agricultural Policy is necessary

Scientific Essay from the year 2013 in the subject Geography / Earth Science - Economic Geography, grade: 1,3, University of Richmond, language: English, abstract: This paper takes a closer look at the Common European Agricultural Policy and especially at agricultural subsidies. The paper will firstly outline the important aspects of the EU agricultural policy and building on that will try to analyze the impacts of farm subsidies to large farmers in the EU on the markets in especially developing countries. It attempts to apply the concepts of international trade and market liberalization to account for current problems and possible solutions. The paper will argue that, although local African farmers cannot compete with subsidized products from the EU, an abolition of farm subsidize would not necessarily lead to economic development in developing countries, since they are not equipped for the increased prices and higher production requirements. However, this paper will conclude that the EU should cut its spending on subsidies.