The first edition of this book, published in 1991 with the title "The Common Agricultural Policy and the World Economy," was well received as a timely analysis of this fast-moving but important subject. However, several major developments, such as general CAP reform, the General Agreement on Tariffs and Trade (GATT), expansion of the European Union, and relationships with eastern Europe, have justified the need for a new edition. As a result, the book has been thoroughly updated, with some completely new chapters added and others replaced. It has also be rewritten with a greater emphasis on the needs of students for a well-integrated, comprehensive textbook.