No. 34 The future of the Common AgriculturaL Policy 58 ANALYSIS AND PROSPECTIVE STUDIES CULTIVAR were authorised to produce. Exceeding the quota meant paying a fee. At the same time, pressure was mounting from world trading partners who accused the then EEC of excessive protectionism and demanded greater market liberalisation.1 Portugal joined the EEC, as we have seen, in 1986, with the CAP in full swing through four Common Market Organisations (CMOs), namely: cereals, beef cattle, dairy cattle and sugar, sectors that were privileged because they were essential to food production and corresponded to the natural vocation (in terms of climate and soil) of agriculture in the six founding Member States (MS). Portugal's specific characteristics favoured other products (olive oil, wine, fruit and vegetables), which received little support from the EAGGF Guarantee Section. This justified the negotiating effort to obtain maximum support from the EAGGF Guidance Section (EAGGF-G). The negotiations for Portugal's accession to the EEC, which took place from 1979 to 1986, resulted in a ten-year transition period, 1986-1995, which included the Specific Programme for the Development of Portuguese Agriculture (PEDAP), with a Community contribution of ECU 700 million2. 1992 CAP reform – This was a major change in the EEC, the first major and most significant reform of the CAP, with the aim of reducing the overall budget and abandoning the policy of unlimited guaranteed prices. This profound reform led to the abolition of price support and its replacement by direct payments to farmers' incomes, calculated on the basis of 'historical' production per hectare (cereals), or on the number of animals kept on farms, per livestock unit (cattle), and introduced obligations in terms of environmental protection and incentives to improve food quality. This reform reduced border protection (with a reduction in tariffs and export refunds) and market mechanisms were strengthened in preparation for future World Trade Organisation (WTO) agreements. In addition, instruments were developed to support farmers' incomes linked to territorial and environmental issues: compensatory allowances for less-favoured areas, agri-environmental measures and measures for the afforestation of agricultural land, in addition to a sharp increase in structural support for lessdeveloped agriculture under the EAGGF Guidance Section. 1999 CAP reform – Agenda 2000 – New focus: rural development – After almost 40 years, the CAP budget still accounted for almost 50% of the total EU budget, even though the agricultural sector was creating fewer new jobs than other growing sectors, particularly the services industry. In this context, and with a view to the future enlargement of the EU in 2004, the new reform led to the creation of a second pillar of the CAP, dedicated to rural development, and a more holistic approach to agriculture and rural development, with the aim of improving agricultural competitiveness, providing alternative sources of income in rural areas and strengthening social cohesion in those areas. Mid-term review of the CAP in 2003 – Direct aid under the first pillar is now provided through a single payment per farm, which is income support decoupled from production for the arable crop and livestock sectors, with the introduction of ‘cross-compliance’. Farmers now receive support on condition that they care for agricultural land and comply with standards on food safety, the environment, animal health and animal welfare. There is also a consolidation of rural development. CAP Health Check in 2008 – Consolidation of the decoupling of aid to sectors not previously covered, except dairy cows and premiums for sheep and goats in some Member States. It was also decided to phase out milk quotas through a soft landing to be completed in 2015. 1 Source: https://www.consilium.europa.eu/pt/policies/the-common-agricultural-policy-explained/timeline-history-of-cap/ 2 The ECU (European Currency Unit) was a non-cash currency (used only for transactions between banks, corresponding to a weighted average of Community currencies) used between 1979 and 1999, when it was replaced by the euro (1 ECU = 1 euro). It was the cornerstone of the European Monetary System (EMS).
RkJQdWJsaXNoZXIy MTgxOTE4Nw==