Additional Product Aid
Summary of Additional Product Aid
A feature of the Common Agricultural Policy of the European Economic Community, which provides price supports to EEC producers affected by import competition. The “community preference”mechanism of the CAP eliminates external competition for most items but does not respond for certain products (e.g., durum wheat, olive oil, tobacco) on which duties are low and are fixed under the General Agreement on Tariffs and Trade. Additional product aid payments are applicable on commodities covering only 2.5 percent of EEC agricultural production. Common Agricultrural Policy is considered here.
(Main Author: William J. Miller)
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