All these formal rules, including the European Union agricultural policy, are aimed in initiating economic change. Along with globalisation which promotes global free trade, the need for trade policies of importing and exporting products has to exacting under trade liberalisation laws. In June 2003, European Union (EU) farm ministers has reached the final compromise reform package has strayed a long way from the original agricultural policy that had been formulated in 1992.
The deal confirms the concept of 'partial decoupling', which was introduced this year, although member states have the option of a further two-year delay. The agreement also boosts the EU's rural development ambitions with a deal on compulsory 'modulation'. But although butter and SMP prices are to be cut, milk quota increases are delayed, and the cereals intervention price will remain unchanged (Agra Europe, 2003).
With trade liberalization under the General Agreement of Tariffs and Trade (GATT), hundreds enthusiastically adopted the regional trading arrangements that proliferated since its birth. The success recorded in the liberalization of international trade in the manufacturing sector has thus been matched by a reverse process of ever-escalating protection and subsidization in the agricultural sector. ...Show more