The Common Agricultural Policy (CAP) plays a major role in defining the activities of the food and farming sector in Europe and how it is financed. Providing billions in subsidies for food production and standards, the CAP is a pivotal policy that the farming industry revolves around.
The EU’s agricultural trade policy with other trading blocs opens up major markets for agricultural food products and represents expansion opportunities for food-based businesses as well as challenges in the form of tariffs and non-tariff barriers to trade.
Environmental and animal welfare policies in the European agricultural arena are growing in number and require careful coherence to avoid non-compliance action, as well as a method to promote forward-thinking farming processes.
Key facts about European agricultural policy
- The EU’s Common Agricultural Policy (CAP) needs to be agreed on by the end of 2020.
- The UK is set to phase-out CAP-style direct subsidies from 2021 and replace with Environmental Land Management Schemes, as part of its withdrawal from the EU.
- Glyphosate, the world’s most widely used herbicide, is set for regulatory renewal in 2022 with some EU states planning a ban on the substance prior to this date.
- An ongoing tariff dispute between the EU and the US is expected to worsen in 2020 when the EU gets WTO approval to apply its own retaliatory duties.
- The EU Green Deal is being crafted this year to make the EU bloc climate neutral by 2050.