Base Price

Base Price

Summary of Base Price

As used in conjunction with the Common Agricultural Policy of the European Economic Community, a trigger price for specific commodities at which member states will intervene to support the market price of a commodity. Member states may respond to a decline in market prices below the base price by large-scale purchases to increase prices, or may impose levies upon commodities from foreign producers to prevent disruptive competition from abroad.

(Main Author: William J. Miller)



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