Measures that are more specific complete the picture targeting specific support for certain products, production methods, or specific local conditions. Among others, some target Organic Farming (OF), young farmers, or specific investments. Other measures provide aid to farmers in less-favoured areas or aid to compensate for the additional costs of adopting more environmentally friendly practices.
• The CAP and the economyThe 1992 reform of the CAP was initially a response to an external constraint to allow the successful conclusion of the multilateral agricultural negotiations of the 1994 Uruguay Round of the General Agreement on Tariffs and Trade, also known as GATT, and the compatibility of the future CAP with this agreement . The path taken at that time (that is, the decoupling of the agricultural income support policy) is the same that is followed today, even though the global context has changed markedly, with the rise of new agricultural export (Argentina, Brazil) and import (China) players; the failure of the multilateral negotiations of the Doha Round at the World Trade Organization (WTO); 4 the multiplication of bilateral trade agreements; and more recently, the unilateral setting of customs duties by certain countries in a climate of (at least latent) trade warfare. For completeness, it should also be noted that the European agricultural sector is facing new and significant economic challenges that it is struggling to meet: first, fluctuations in agricultural prices and incomes in an EU that is less protected by customs duties today than it was previously (even if these remain significant for several products and non-tariff protection still exists); and second, difficulties in creating value in the context of a saturated domestic food market and in distributing the value created in a balanced way between the different actors of the production, processing, and distribution chains.The economic aspects of the CAP and European agriculture are the subject of the first part of this book. Following a brief history of the CAP from its origins to the present day in Chapter 1, Chapter 2 deals with the question of the dependence of farm incomes on CAP support, and Chapter 3 examines agricultural employment dynamics. Chapter 4 covers trade aspects and the competitiveness of European agriculture on the international scene. Chapter 5 examines the distribution of value, and Chapter 6 discusses the crisis and risk management instruments.