Restitutions

Summary of Restitutions

Export and producer subsidies granted by the European Economic Community to EEC farmers and processors. The subsidies are a feature of the Common Agricultural Policy (read this and related legal terms for further details).

(Main Author: William J. Miller)

Restitutions and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Restitutions: Certain payments made under the European Community’s Common Agricultural Policy (CAP) to exporters of processed agricultural products made from raw materials for which the processor paid higher than world prices. In principle, restitution payments are not supposed to subsidize exports, but only to lower their selling prices to the levels that would have prevailed in the absence of CAP price distortions.