An Analysis Of EU 's Common Agricultural Policy Reform In

With the deepening of economic globalization, the development of multilateral trade system in particular, more attention has been paid on agriculture industry. Since1950 s, European economic integration,through different stages like coal and steal community at first, customs tax alliance and European community, has become more mature and developed to today’s European Union. As the most important economic phenomenon emerged after world war two, it can be forseen, with the field experience through the past half century, to has the developing prospect in future that can not be neglected.Common Agriculture Policy is the first common policy implemented within European Union in the whole process of European economic integration, which takes an important and special state from the very beginning. Common Agriculture Policy,short known as CAP, is the common code of conduct on agriculture market and production economy, which has been implemented in form of policy and regulations among and co-intervened by European members. It has, with 40 years implementation,made great contribution to European agriculture protection and development.The essence of CPA is the price support policy. In the first 10 years of CAP’s implementation, the price support policy, indeed, impacted active effect on promoting production efficiency, increase agriculture supply, stabilize market and price.However, with the transition from a pure agricutlre products importer to the exporter of main products, as a result, CAP price support caused a great cost of excessive agriculture production. The rate of CAP expenditure on all European union’s total cost has even reached the historical high at 73%, and still 45% nowadays, which makes European finance overwhelmed. Besides, the huge export subsidies used by European Union has exacerbated the trade friction and conflicts between European union and its trade partners, and CAP has also been criticized internationally. To alleviate financial burdens, reduce excessive agriculture, increase international competitiveness, and to adapt WTO rules, European Union has, since 1990 s, launched two fundamental reforms: Reform in Year 1992 and Agenda in year 2000 which transfer the price support to direct income support. In June, 2003, European Union has passed another reform known as reform 2003, in which the direct subsidies has been changed to the non-sub one. This paper it to research the inner system of commonagriculture policy reform of year 2003 including the reason of reform, differences with the reforms before, and to analyze its effects by setting the reform in Ireland as an example. The last part of paper also makes an anticipation on the development of common agriculture policy...