Consolidated version of the Treaty on the Functioning of the European Union<\/p>\n
Download or open the entire text of the document<\/a><\/p>\n TITLE III<\/p>\n AGRICULTURE AND FISHERIES<\/p>\n Article 38<\/p>\n (ex Article 32 TEC)<\/p>\n 1.\u00a0\u00a0The Union shall define and implement a common agriculture and fisheries policy.<\/p>\n The internal market shall extend to agriculture, fisheries and trade in agricultural products. \u2018Agricultural products\u2019 means the products of the soil, of stockfarming and of fisheries and products of first-stage processing directly related to these products. References to the common agricultural policy or to agriculture, and the use of the term \u2018agricultural\u2019, shall be understood as also referring to fisheries, having regard to the specific characteristics of this sector.<\/p>\n 2.\u00a0\u00a0Save as otherwise provided in Articles 39 to 44, the rules laid down for the establishment and functioning of the internal market shall apply to agricultural products.<\/p>\n 3.\u00a0\u00a0The products subject to the provisions of Articles 39 to 44 are listed in Annex I.<\/p>\n 4.\u00a0\u00a0The operation and development of the internal market for agricultural products must be accompanied by the establishment of a common agricultural policy.<\/p>\n Article 39<\/p>\n (ex Article 33 TEC)<\/p>\n 1.\u00a0\u00a0The objectives of the common agricultural policy shall be:<\/p>\n (a)\u00a0to increase agricultural productivity by promoting technical progress and by ensuring the rational development of agricultural production and the optimum utilisation of the factors of production, in particular labour; (a)\u00a0the particular nature of agricultural activity, which results from the social structure of agriculture and from structural and natural disparities between the various agricultural regions; Article 40<\/p>\n (ex Article 34 TEC)<\/p>\n 1.\u00a0\u00a0In order to attain the objectives set out in Article 39, a common organisation of agricultural markets shall be established.<\/p>\n This organisation shall take one of the following forms, depending on the product concerned:<\/p>\n (a)\u00a0common rules on competition; The common organisation shall be limited to pursuit of the objectives set out in Article 39 and shall exclude any discrimination between producers or consumers within the Union.<\/p>\n Any common price policy shall be based on common criteria and uniform methods of calculation.<\/p>\n 3.\u00a0\u00a0In order to enable the common organisation referred to in paragraph 1 to attain its objectives, one or more agricultural guidance and guarantee funds may be set up.<\/p>\n Article 41<\/p>\n (ex Article 35 TEC)<\/p>\n To enable the objectives set out in Article 39 to be attained, provision may be made within the framework of the common agricultural policy for measures such as:<\/p>\n (a)\u00a0an effective coordination of efforts in the spheres of vocational training, of research and of the dissemination of agricultural knowledge; this may include joint financing of projects or institutions; Article 42<\/p>\n (ex Article 36 TEC)<\/p>\n The provisions of the Chapter relating to rules on competition shall apply to production of and trade in agricultural products only to the extent determined by the European Parliament and the Council within the framework of Article 43(2) and in accordance with the procedure laid down therein, account being taken of the objectives set out in Article 39.<\/p>\n The Council, on a proposal from the Commission, may authorise the granting of aid:<\/p>\n (a)\u00a0for the protection of enterprises handicapped by structural or natural conditions; Article 43<\/p>\n (ex Article 37 TEC)<\/p>\n 1.\u00a0\u00a0The Commission shall submit proposals for working out and implementing the common agricultural policy, including the replacement of the national organisations by one of the forms of common organisation provided for in Article 40(1), and for implementing the measures specified in this Title.<\/p>\n These proposals shall take account of the interdependence of the agricultural matters mentioned in this Title.<\/p>\n 2.\u00a0\u00a0The European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee, shall establish the common organisation of agricultural markets provided for in Article 40(1) and the other provisions necessary for the pursuit of the objectives of the common agricultural policy and the common fisheries policy.<\/p>\n 3.\u00a0\u00a0The Council, on a proposal from the Commission, shall adopt measures on fixing prices, levies, aid and quantitative limitations and on the fixing and allocation of fishing opportunities.<\/p>\n 4.\u00a0\u00a0In accordance with paragraph 2, the national market organisations may be replaced by the common organisation provided for in Article 40(1) if:<\/p>\n (a)\u00a0the common organisation offers Member States which are opposed to this measure and which have an organisation of their own for the production in question equivalent safeguards for the employment and standard of living of the producers concerned, account being taken of the adjustments that will be possible and the specialisation that will be needed with the passage of time; Article 44<\/p>\n (ex Article 38 TEC)<\/p>\n Where in a Member State a product is subject to a national market organisation or to internal rules having equivalent effect which affect the competitive position of similar production in another Member State, a countervailing charge shall be applied by Member States to imports of this product coming from the Member State where such organisation or rules exist, unless that State applies a countervailing charge on export.<\/p>\n The Commission shall fix the amount of these charges at the level required to redress the balance; it may also authorise other measures, the conditions and details of which it shall determine.<\/p>\n Download or open the entire text of the document<\/a><\/p>\n
\n(b)\u00a0thus to ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of persons engaged in agriculture;
\n(c)\u00a0to stabilise markets;
\n(d)\u00a0to assure the availability of supplies;
\n(e)\u00a0to ensure that supplies reach consumers at reasonable prices.
\n2.\u00a0\u00a0In working out the common agricultural policy and the special methods for its application, account shall be taken of:<\/p>\n
\n(b)\u00a0the need to effect the appropriate adjustments by degrees;
\n(c)\u00a0the fact that in the Member States agriculture constitutes a sector closely linked with the economy as a whole.<\/p>\n
\n(b)\u00a0compulsory coordination of the various national market organisations;
\n(c)\u00a0a European market organisation.
\n2.\u00a0\u00a0The common organisation established in accordance with paragraph 1 may include all measures required to attain the objectives set out in Article 39, in particular regulation of prices, aids for the production and marketing of the various products, storage and carryover arrangements and common machinery for stabilising imports or exports.<\/p>\n
\n(b)\u00a0joint measures to promote consumption of certain products.<\/p>\n
\n(b)\u00a0within the framework of economic development programmes.<\/p>\n
\n(b)\u00a0such an organisation ensures conditions for trade within the Union similar to those existing in a national market.
\n5.\u00a0\u00a0If a common organisation for certain raw materials is established before a common organisation exists for the corresponding processed products, such raw materials as are used for processed products intended for export to third countries may be imported from outside the Union.<\/p>\n