Jan. 20, 2015

Sectorial Analysis

The original spirit of the Common Agricultural Policy (CAP) was to think of agriculture as a sector unfolding in time, subject to natural hazards, including actors, both farmers and the population that is fed, having interests on which national states shall ensure.

The spirit of the new Common Agricultural Policy is different, even opposite, which explains the length of its gestation. Indeed, competition becomes the principle guarantor of innovation, fair prices for consumers and competitiveness of the European agricultural industry facing global competition, which leads to assist agricultural enterprises, to worry about products quality, away from the subtraction of these products of the principle of competition.

The political agreement was reached in 2013, the basic technical texts were completed in 2013 for the new apparatus be applicable to January 1, 2014, including a Regulation of 17 December 2013 establishing a common organisation of the markets in argricultural products (CMO).

It points out that the agricultural sector is subject to competition law only if the Community legislature didn't stipulate differently!footnote-16. The Regulation almost affirms the opposite principle: "It should be provided that the rules on competition relating to the agreements, decisions and practices referred to in Article 101 TFEU and to abuse of a dominant position apply to the production of, and the trade in, agricultural products, provided that their application does not jeopardise the attainment of the objectives of the CAP.". The Regulation  details: A special approach should be allowed in the case of farmers' or producer organisations or their associations, the objective of which is the joint production or marketing of agricultural products or the use of joint facilities, unless such joint action excludes competition or jeopardises the attainment of the objectives of Article 39 TFEU.

On 15 January 2015 the European Commission launches a consultation on the "joint salling of olive oil, beef and veal livestock and arable crops, cases covered by the Regulation.

How the new balance will be between competition and regulation?!footnote-20

It is likely that future guidelines will be the place of expression of this balance.