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Abstract

Our paper focuses on the question: how the measures of June 2003 agreement can help the EU to meet the new WTO commitments. As decoupling of direct payments and WTO classification of the new payments seem to be one of the most important questions from the point of view of WTO negotiations, our analysis focuses mainly on the Single Farm Payment (SFP). We assesses the decoupled nature of the single farm payment (SFP) based on WTO and OECD criteria. We conclude that the SFP meets not only the current WTO (design based) criteria of decoupling, but can also be qualified as effective fully decoupled system using the OECD terminology.

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