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Abstract
The Common Agricultural Policy induces two types of income transfers between EC member countries: those which take place via the «agricultural budget» of the Community, and those which materialize through intra-community agricultural trade. Between 1976 and 1981, the development of the former was characterized by (a) a rapid rise in the positive transfer for France, and (b) a spectacular increase in the negative transfer for the Federal Republic of Germany and the UK. At the same time, the development of transfers through intra- community agricultural trade showed (1 ) a dramatic decline of the positive transfer (net exports) for France, (2) a spectacular fall in the negative transfer (net imports) for the UK and (3) a continuous transformation of the negative transfer into a positive one for the Federal Republic. It is shown that these developments were the logical result of certain tendencies and reactions in the system of real agricultural trade flows in intra-community trade and trade with third countries.