Despite living in a globalizad economy, where international trade is the norm and most of the products we use daily are manufactured abroad, agriculture is the still an island of protectionism. Farms are extremely protected all over the world. Is not easy to find a country that has no tariffs, subsidies or quotas for their Primary sector.
In Europe, the Common Agricultural Policy –also known as CAP—means over 72 billion USD to the European budget. But the Brexit has become a turning point to this. Since Great Britain was one of the biggest net contributor to CAP, Brussels must cut a lot of those subsidies and, gradually, starting a liberalization.
Are we witnessing the end of the CAP in Europe? Could this be a model for other countries? Shall we see an end for agriculture protectionism all over the world? We will answer to all of this questions on this video.
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Other videos from VisualPolitik:
Has Protectionsim increased in the World? https://www.youtube.com/watch?v=y9OtfQDwUb0
Why the NETHERLANDS is the World's agricultural LEADER? https://www.youtube.com/watch?v=vUmP8Tli-Mc&t=29s
Tariffs in Europe.
Nope they wont. They even want to increase it with a new law forbade gorcery stores to collabarate buying. This is a hit against edeka, lidl... Against the german economy again. Hopefully they will never implemant that law.
No, I don't want to eat cheap food. Food is not a smartphone. The same comes with medication. I want to buy food from trusted sources. Besides European producers can only compete with highly developed markets.
Hahaha many mistakes but it's a huge and complex topic.
1. CAP allow to balance the environmental advantage, if not you will have only crops, where it's the most cheap to produce.
2. Never a french president will be against CAP because farmer have weight in election.
3 . France give more money to UE that's she get back. Not like UK, thx for brexit!!
4. CAP allow to small farmers to produce prodcuts of very good quality for our gastronomy culture.
It's something difficult for USA to understand the place of food in our culture.
USA food culture is so poor and most of your products are bad quality.
The subsidies of CAP should probably stay in place in a reduced form. One of the reasons it was introduced (but not mentioned) is the strategic military reliance. If the EU were ever to be embargoed (economically or militaristicly) or there be a wide spread natural disaster, it is important that the EU is able to supply itself of food. So with the reduction of CAP there should be extra attention for basic food commodities like grain, corn, potatoes and others. Things like Camembert or Chardonnay are not life essential and should be given far less importance.
Hi guys. This is a very hard and complicated topic, personally, I am not picking side, because I know how the topic is complicated.
I just want to make a point. I live in Czech Republic, we were part of the Eastern Block. So when we transformed into a free country, our economics and agriculture was in pretty bad shape (what wasn't screwed during comunism, was stolen afterwards during Privatisation (capital letter is right there)). The quality of our food was horrible. The cheepest, shitty food. But in the last years a lot has changed. Things, that would be impossible to get five years ago are now in shops. There is big consumer drive towards quality. And with this, people are willing to pay more for their food. Things like Bio, Free Range etc. are booming. In our country, there is currently big back lash against cage-kept chicken (some big stores will stop selling eggs from them as soon as 2020). So I am pretty sure, that a lot of farmers will have oportunities to compete even at price disadvantages.
Also, probably the biggest problem with our agricalture is, that disproportionate part of the money goes to the biggest players. To those, who don't need much government help when one year is bad harvest.
Also. Our Prime Minister, owner of the biggest agriculture corporation in our country, was cought multiple times taking dotations that were supposed to be given only for small bussineses (setting up companies and getting dotations from his own administration).
In its core, the agricultural policies of Europe are a hundred years old, after the food shortages and famines of 1916-1920 and 1943-1947.
Sure, those also had to do with wars, but also with a lot of European countries relying on imports for their food. The wars showed their vulnerability.
Food is pretty important.
They dont go leave the protecion of agriculture in europe, Its the only way we have to compete to others nations inside the europe and outside, im portuguese im know that, we are one marquet in europe but we dont play togueder Its only one for self,
And if they cut the founds, they go put the union in cause, Its the base of union and we are adited to the founds Its the cheat way we have to compet to others european countrys and the world
If they dont give money we go put union in cause, we have better live in old coin escudo, them now in euro, today Its cheap it euro to buy tecnologie and cars, but the food and every elses in gow up prices Its a error for wus, now we are paying and Its a god paying
This was an amazing video! I think there is atleast a space for more open trade of fresh products in Europe coupled with a protection of a few core markets for security reasons. If you want subsidies you apply for a permit to produce "for the nation". That core group probably shouldn't be bigger than 7 products. Open up the rest of the market entirely.
As my Grandfather (Managed and built up one of the largest farms in part of the UK and instrumental in the creation of artificial insemination for cattle and so on) said about subsidies and protectionism, "it was needed at the end of WW2 but then should have been phased out all it does is keep bad farmers farming". I see how harmful it is here in the South of France, most of the wine around here is turned to vinegar and the farming techniques are very harmful to the environment. You may well have seen some of the farmers from around here playing a part in the Tour de France, other protests include burning rubbish on roads and round abouts damaging trees, other vegetation and the roads in the process and of course not cleaning up any unburnt rubbish at the end. Time farms were treated as any other business.
The EU break one of it's many subsidies?!!??!?!? ..... do you mean like get rid of subsidy payments while ramping up its tariffs and downright aggressive legal action? Because if it was that I would totally believe it. Ironic how you make money on YouTube vids.
For almost 14 years France has refused to allow the other EU member states to even formally discuss the total unfairness of the CAP. Now Britain is leaving that has to change because we will eventually stop paying billions onto the Brussels slush pot. But French farmers are highly aggressive SOB's and will stop traffic and combine with other trade unions to stop just about everything. It's going to be very ugly when other peoples money runs out.....
First of all, I do CARE where my products come from and don't buy anything I know comes from place with bad human rights practice, like Saudi Arabia or Israel to name only two. Second, I think PAC must be reformed and progressively downsized, developing sustainable practices on its way out. Third, consumers should face as unavoidable the fact that food prices will go up, reduce waste and eat better.
I think the test of real intent for the EU will be if they finally get rid of the QUOTAS on Mercosur beef. Will France and Ireland be willing to sacrifice the interests of their farmers for the sake of EU industry gaining better access to the huge markets of Brazil and Argentina?
Agriculture will always be an absolute necessity in any nation. Though I don’t necessarily like the ‘farmers’/corporate welfare’(government subsidies) here in the USA, I do understand to up to a certain extent why it is needed.
Most middle class people here have issues with it because of the widening economic gap between the rich and poor. Some farmers are filthy rich due to government subsidies but depending on your perception of the political spectrum many will argue that farmers don’t invest in creating more jobs with the extra money they receive therefore making many not confident in trickle down economics.
Yea well if subsidies were uniformed for all EU countries they might be ok but let me give you an example: A Bulgarian farmer ( i know you don't care but humor me ) gets a subsidy of 0.05 eu on a kilo of produce while a Greek farmer gets 0.50 cents. That Greek farmer overproduces ( plus their climate is more accommodating for certain produce ) and he creates dumping on the Bulgarian market at laughable prices because he covers his costs and profits from the subsidy. So subsidies are great thing if you live in a bubble , they don't work so good in the real world.
Our kitchens are full of coffee from the coffee belt & coconuts from Thailand. If you live in the UK you are probably eating spices & rice grown in Asia or almonds grown in the USA, all sorts of stuff from Kenya & Egypt. The opening gambit of this film is inaccurate. Have a banana & a cup of tea with a bit of chocolate! Get my drift? My cupboards are full of stuff from beyond the EU.
Ending protectionism in the EU would be really bad. That would mean that local farms would start to disappear and our food would be outsourced outside of our countries. Countries with no food sector would become totally dependant on food producing countries and by extent start losing their sovereignty.
When everyone is making as much as they possibly can and selling it everywhere for as much as they can get. It will lower food prices around the world. This is a good thing. It will drive innovation and spur cost saving measures in the ag sector. Could make great leaps in water saving and irrigation tec
I hope so. Farming is such a massive industry, yet it's so slow to modernise. It creates a disproportionate amount of countries CO2, it destroys wildlife (farms are just as barren as any industrial estate) and they are so backwards they make anti vaxers look sane. Honestly, farmers could vaccinate cows from tb, but countries won't let that happen.
That's not to mention gmo's they use and promote. GM companies creating herbicide resistant plants just so they can sell more herbicide. Ridiculous.
Agriculture products will mostly come from the US which has the largest production in the world, if EU cut tariffs to import more food. The reason behind is mainly for the exchange of America’s lower tariffs on industrial products, which can save German car industry from the tariff war, but it’s on the compensation of French farmers’ interest.
You forgot to talk about the nr. 1 reason for protecting the agricultural sector. A political entity that does not have a strong agricultural sector is really gambling with the life of it's inhabitants and putting itself in a very weak position in general. If a big war breaks out and your country/alliance has a weak agricultural sector... I think everyone can imagine how that will work out. Nobody wants that.
Scrap food security and reduce quality standards ('denser' farms = sicker animals = more germs and/or antibiotics in the meat) just to follow the "free market religion", no thank you !
And Macron is just like all these thick headed accountants at the French Treasury (in which he was a high ranking bureaucrat before joining Rothschild), hating France and its people, just wanting to sell it to the local elite or foreign oligarchs in the name of " holy Capitalism"...
hope those farmers who adventage will not be letting their weakened collegue down : in France suicidal rate is for long already the highest with police officers in France . let s pray is not going to raise even more
actually you are wrong you can find lot of imported stuff :grapes from Egypt and South Africa even USA this is uk i dk France maybe there is different.What i think they do they take from everywhere and pack them here
I can't find a thing produced in my country.....Silly man! Just to add my 2 cents.....
In my EU country I find almost everything from another country than mine :))......If that's not liberal, then what is the point of this video?
Not everywhere.....And some people get bankrupt too from this problematic directive in EU :P.....So it's not good not even for EU citizens.
Good video dude. There exists speculators for exactly this reason. Offsetting the uncertainty. The Farmer will make a deal and sell his wheat or whatever at $1.50/kg. Regardless of the real market price, to a speculator. For the speculator takes on the risk. Then, the speculator would sell the farmers wheat at $1.20 if that happens to be the market price, or $1.80 if that is the market price. The farmer is happy, he got enough to cover his inputs and made a small profit, but he lost out on the massive gains. For the $1.20 scenario the farmer is ecstatic, but the trader/speculator is making a loss. But the speculator, if hes smart, would have been speculating on more than one industry or commodity, and thus could offset some of his losses. To think that you need the "State" for this function is largely misguided and especially inefficient.
Auto sufficiency of nations must be maintained whatever the cost ESPECIALLY concerning food. Take a look at what happened in Tunisia, human rights used as toilet paper in a sinister dictatorship for decades and hardly a peep from anyone, however as soon as there wasn't enough bread, tens of thousands took to the streets and there was a revolution.
It may be sad to say but in the end it's alll people really care enough about.
Oh and Simon there are far more mesures than you seem to be aware of which protect auto sufficiency, for example the wheat farmer you spoke about can't just sell his produce to whomever he choses, he has to sell it to a state run organisation who keeps an eye on national wheat levels. It works like that in France anyway and I'd be astonished if ANY of the other major developed countries of the planet don't opperate in a very similar way for all such primordially important produce.
Every country on the planet doesn't impose tariffs this way... Check out the agreements between the CEMAC and the EU. More than 3000 products come tariff free in Central Africa from Europe. And these are manufactured products. This is of Course because these countries are still colonies and their currency belongs to the french government.
If you listen to the first 30 seconds of this and listen to him say you can't find one food from outside your country than he doesn't own a refrigerator or a pantry hell let's just start with pepper doesn't come from any country in the Western hemisphere hell it's still just comes from a couple islands and India I'm just going to stop here because this guy is well cuckoo
Farm subsidies cause inefficient farming practices, in NZ we have no farm subsidies and we make most of our money from farming. How can this be? When I went to the UK I noticed that all the farms are tiny, farms that size wouldn't exist in NZ because they would go bankrupt.
In my country (Finland) the situation with subsidies is even worse. We national subsidies on top of the EU ones and the share of the subsidies of the net added value of agriculture is the highest in the EU. Latvia has the next highest share of subsidies of the net added value, which is about 90%. Think that's a lot? Well, for Finland the same number is about 190% (!).
With our prices we can't really compete against larger countries and since our national security kind of dictates that we have to have domestic food production, this is the result. There is lot more in to the matter than just what was brought up in this video.
The CAP is there to keep competing-nation farmers from working: you pay them to sit idly, neglect their property and slowly allow their skills and property to degenerate. Once a certain level of degeneration is acchieced, you lift the cap and poof: German farmers are on top again, leading the civilized people of Europe out of their laziness and subsidized lassitude.
German progress and forward thinking will be the shining beacon of hope and industry once again. Amazing. A slow clap for Germany. They were paying subsidies to Eastern-European nations precisely for that reason.
France is a bit of an exception, a first-speed nation, it could not be either allowed to dominate Germany or to be allowed to slack into oblivion. They're also pretty feisty. Some of their protests included spraying government buildings with faeces. Kudos France, post-revolutionary politicians are, well, poopy.
This plan, of course, will never backfire.
There will always be some form of protectionism as there is no universal food standards. eg, you couldn't sell meat from China in Europe as it's full of chemicals and battery produced. This is an automatic barrier to trade as even before tariffs and subsidies set in, regulation of food products mean there has to be standards in one country for a farmer in another country to sell to.
I always hear that we Americans are real gluttons & honestly I agree, but why do French supermarkets look like World War Z markets?😭😂😂 Each shelf looks as if they have 3 items & NO MORE!! Lmaoo
Great video like always, very informational!!!
the EU safety standars of the food are soooo good for an outsiders like us the macedonianas because we are seeing what means to have NO SAFETY(FROD,False labeling ) when food is concern. i am afraid to buy honey any more after i heard that it can be made from corn sirup in you kitchen. i dont know about the EU but outside the EU is WILD WEST!! concering the food production.
Why are you starting with a lie about that we can't find one product that is made out of the European Union.
We can say a lot of product's and embles of difrent can't of products that are made out side the European Union.
Maybe you have to ask the quostion can the USA it?
A lot of fruite and vegitbles and grain , and rise come frome out the Eu, because the EU have to little space for to produce food for evry European citycesen.
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