1997 Volume 39 Issue 3 Pages 32-45
The purpose of this article is to make a clear attainment of 1992 CAP Reform and problems remained, describing the real condition of European Agriculture under the new established WTO. What is most important, when we investigate GATT agricultural negotiation in connection with international agricultural reform, is to clear up what is permitted or not afterwards, in compliance with agricultural agreement of Urguay round. The Urguay Round Agreement provided two exemptions from agricultural protection; pease clause called blue box and semi-permanently exemption of agricultural protection called green box. CAP will have to reoganize towards new European Agriculture which is competitive internationally until next round, making use of these exemptions. In other words, CAP has to reoganize de-coupling from blue box to green box, and then make it agree with rules of WTO. CAP will be, therefore, needed to place environmental problems in the central part of policy. British Government has been having an eye on efficient and internationally competitive agriculture, reducing agricultural protection and has been looking for a way to sustainable agriculture, using various economic instruments instead of environmental regulations.