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Impact of EU agricultural policy on developing countries: A Uganda case study

Ole Boysen, Hans Grinsted Jensen, Alan Matthews

IIIS Discussion Paper No. 452

Despite substantial reforms, the EU's Common Agricultural Policy (CAP) is still criticised for its detrimental effects on developing countries. This paper provides updated evidence on the impact of the CAP on one developing country, Uganda. It goes beyond estimating macro-level economic effects by analysing the impacts on poverty. The policy simulation results show that eliminating EU agricultural support would have marginal but nonetheless positive impacts on the Ugandan economy and its poverty indicators. From the perspective of the EU's commitment to policy co-herence for development, this supports the view that further reducing EU agricultural support would be positive for development.

Keywords: Uganda; Common Agricultural Policy; poverty; trade policy; domestic sup-port; computable general equilibrium-microsimulation
JEL classification: D58; F14; O10; O55

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Last updated 28 August 2014 by IIIS (Email).