Effect of integration processes in the development of the agricultural policy of the EU: experience for Ukraine

Abstract

The paper studies the mechanism of the implementation of common agricultural policy by the EU member states. It was defined that the EU agricultural sector is given considerable financial support, especially through government intervention into the market economy by means of price regulation. In the EU countries the state regulates the prices of more than 270 kinds of agricultural products. The main goal of state price regulation in developed countries is achieving sufficient farm profitability. Research shows that during the EU spreading competitiveness has increased substantially. In some time all these will lead to the formation of a strong agricultural area, aimed at food exports and imports well protected by high import duties and rate restrictions, not taking into account numerous technical barriers. United Europe, while implementing a common agricultural policy, in any case will be the largest exporter of food, as experience shows that the growth of agricultural production is difficult to limit. In addition, this export will be spent on major subsidies.