ABSTRAKIn the Treaty of Rome 1957, agriculture sector has been recognized as an important feature regarding its strategic values, such as the natural factor with its major role, food endurance and its susceptibility toward competitive pressures although its contributions on economics declined.
On 30 July 1962, Common Agricultural Policy (CAP) was introduced after three years of negotiations in line with the mechanism settlement and its organizations as a whole. Various agricultural problems in member states were the causes of the difficulties in achieving agreements on CAP mechanism.
Protectionism through market mechanism (price intervention and subsidies) which tried improving the welfare of farmers was the central focus of CAP. But as time goes, this mechanism burdens the European Union's budget. The EU's budget allocation to CAP in 1990 was almost 60% which lead to debates between France and United Kingdom on Budgeting 2007-2013. The EU's enlargement in 2004 was also a cause that burdens the budget. Other factors are the demand from the international trade regulations in GATT, then WTO which tried to establish international trade liberalization through reducing protectionism such as reducing tariffs and subsidies. Various requests on environment conservations, rural development and biotechnology improvement were backgrounds of Mac Sharry Reformations, Agenda 2000 and Reformation 2003.
Pros and Cons on CAP within the European Unions didn't affect the EU's integration because of the common perspectives on uniting Europe as a whole. Less debates within the CAP would shift the focus on external issues therefore strengthen the international positions of EU. But even though EU is powerful enough, deadlock against United States would still remain.
These days international trade is already relative free where barriers in trade are declined. Therefore CAP is no longer a relevant issue. It can block the international trade liberalization because the protectionism still exists. It will be a difficult task for the European Union to completely remove CAP because of its importance for the member states. Currently the European Union is only able to reduce its protection value in phase.