In 2022, the value of total trade (imports plus exports) of agricultural goods between the EU and the rest of the world was €425 billion (see Figure 1). Since exports (€229 billion) were higher than imports (€196 billion) there was a trade surplus of €33 billion.
This pushes me to doubt that the subsidies are keeping prices lower than a re-optimization for domestic consumption, but they could be preventing such a re-optimization. I think the subsidies could very well exist today because they enable a trade surplus (which also means that imported food is cheap enough for that tradeoff to be profitable).
Looking into it I’m seeing this:
This pushes me to doubt that the subsidies are keeping prices lower than a re-optimization for domestic consumption, but they could be preventing such a re-optimization. I think the subsidies could very well exist today because they enable a trade surplus (which also means that imported food is cheap enough for that tradeoff to be profitable).