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Principles of CAP price support system

Initially, the EU (then the European Economic Community) aimed to support the incomes of its farmers almost exclusively through two main mechanisms: (a) by applying levies and customs duties at the Community’s frontiers in such a way that imports could never be sold into the bloc at below the desired internal market (or ‘target’) price set by the Council, and (b) by buying up the surplus supplies of products on the internal market when prices threaten to fall below agreed minimum or ‘intervention’ prices.

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