Thursday, July 17, 2008
The EU may have promised severally to phase out subsidies aimed at helping its farmers sell their produce abroad. The heavily subsidized Common Agricultural Policy (CAP) may be renegotiated when it runs it term. However, as things stand, many believe the CAP is making it impossible for local farmers in poor countries to compete with European foods. The difference in prices makes European produce cheaper than local produce. Some say, the EU is dressing up the problem with concessions through its Economic Partnership Agreements (EPAs) But is this really true?