Coordination in CAP instrumentation: a core theory approach.

Summary This article analyzes international coordination within the European Union by looking at the example of grain trade. The focus is on the divergent interests that may exist in this market between two of the main European exporters: France and the United Kingdom. The authors show how the possibility of reaching a sustainable agreement (in the sense of the core theory) depends on: the nature of the objective function of each member state (the social preference granted to farmers within each state is discussed) . the choice of instruments used to limit cereal production (in particular the percentages of set-aside and the level of compensatory aid) . the way in which the EAGGF is financed by the states. The use of the "Aropaj" model makes it possible to provide quantified results in the framework of a sectoral approach.