The olive oil and cotton lint sectors in the European Union

This paper examines and analyzes the impacts of the reformedCAP as well as the decisions of the new round of negotiations for theolive oil and cotton sectors in the European Union.The aim of this study is to estimate the changes in supply(agricultural supply plus intermediate demand and final production),demand (consumption), price and stock formation (import, export,beginning and ending stocks, national price formation) for both theolive oil and cotton sectors. The model designed for this purpose ispartial equilibrium and policy oriented.The objectives of this model are to estimate changes in theproduction and consumption of the two products concerned, todetermine how the reformed Common Agricultural Policy (CAP) and thenew round of negotiations of the World Trade Organization (WTO)affect these two sectors, to analyze the evolution of export and importvolumes, and finally to determine how this evolution will influence thewelfare situation of the olive oil and cotton sectors.