The EU Common Agricultural Policy Implementation in Latvia

According to the historical evolution studies of protectionism policies in various countries, all industrially developed countries rebuilt their economies ruined during wars by implementing protectionism policies and the level of this protectionism is still high. Agriculture and rural development in European Union (EU) countries depends on the Common Agricultural Policy (CAP) that was designed in 1957 and reformed for several times according to the economic and international situation. The total support for the agricultural sector, which includes support for producers, rural infrastructure, education, and science as well as consumer subsidies amounted to EUR 160 billion in the period 2008-2010, where 80% were intended for agriculture support. After accession to the EU in the period from 2004-2009 in Latvia were paid out 1.3 billion LVL15, in various support measures, comprising growth rate 2.65 times during analyzed period. Total payment structure in Latvia significantly differs from EU CAP payment structures - because for I pillar payments were used 42%, and for II pillar payments - 40% of total support.