Dumping agricultural goods

Description

Dumping agricultural goods involves exporting surplus farm products at prices below production cost or domestic market value, often supported by government subsidies. This strategy aims to relieve domestic oversupply, stabilize local prices, and gain market share abroad. While it can provide affordable food to importing countries, it often undermines local farmers and distorts markets. Remedies include implementing fair trade regulations, enforcing anti-dumping measures, and supporting sustainable agricultural development in affected regions.

Implementation

In Europe, the Common Agricultural Policy supports the dumping of goods onto the world market. 15 years ago the EEC/EU was less than self-sufficient sugar; in 1994, one third of its production is dumped at heavily subsidized prices on the world market. This has substantially depressed prices.