Globalization of agriculture and European integration: A deepening effect of the Uruguay round

Abstract

Taking the effect of the agricultural liberalization promoted by the Uruguay Round of GATT negotiations on European integration as an example, this paper discusses whether the globalization process promotes or undermines regional integration. This paper suggests that the UR had a positive effect on further European integration. It did so by triggering the reform of EC's common agricultural policy, which had been the source of repeated budgetary crises of the EC. Consequently, the UR made money available for a more integrative project, i.e., redistributional policy in the form of structural funds. The assumption of redistributional function by the EC means that the EC expanded its supranational policy competency into an area that in the past belonged exclusively to state prerogatives. Therefore, as the UR was in part responsible for the CAP reform, it can be said that the UR contributed to the deepening of European integration. This is a case where globalism moves regionalism forward.