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By A. Piccinini, M. Loseby

The booklet describes the context during which the typical Agricultural coverage of the eu Union has been proven, the fundamental mechanisms of the coverage for the most sectors of agricultural construction and their variation through the years based on adjustments within the broader global financial system; the alterations in jap Europe, the issues of constructing international locations and the GATT-WTO contract particularly. An creation by way of Franz Fischler, eu Commissioner with accountability for Agriculture, units the scene for group coverage past 2000.

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Extra resources for Agricultural Policies in Europe and the USA: Farmers Between Subsidies and the Market

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2 Source: FAO. 3 Marcus Tullius Cicero, (B. C. 70) "De re frumentaria" in Actio Secunda in Verrem 4 By EI Nino is meant the anomalous warming of the sea off the Peruvian coast which has caused a series of climatic disasters as far away as Australia - drought in Southern Africa, North America and Latin America, delayed monsoons in Indonesia, floods in India and a dramatic decline in the fish population in the coastal waters off Chile and Peru. 5 These distortive characteristics are accentuated in countries, such as Italy, where small farms prevail, where public intervention has been mainly by type of farm enterprise such as the family farm, or for the conservation of out-dated legal forms of rental contract rather than by product; results have been ephemeral since demographic, social and economic trends have continuously annulled these measures, transforming them into corporate rent positions which have hindered the development of agrarian structures and prevented them from following the changes in the rest of the economy.

Both these measures transfer income from business activity to farm property. As a result of direct support, rents have risen considerably and in areas with a small average size of holding, as, for example in Italy, this prevents the enlargement of farms, the realisation of economies of scale and the entrance into the sector of young people and new enterprises. Milk quotas render the problem even more acute in that being linked to yields realised on the farm long ago, they have now become both rent and capital in the hands of the original producer.

As regards the part of the agreement concerning agriculture, often referred to as Blair House II (Brussels, 6 December 1993), the EU has agreed to reduce its support to agriculture; this support is quantified by an aggregate statistic known as the AMS - Aggregate Measurement of Support. A gradual reduction, over a period of six years, of 36 per cent of the value of subsidised exports is foreseen, taking as base period 1986-90. Quantities of subsidised exports must also be reduced by 21 per cent.

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