Background Pillar 1 Common Organisation of Markets (CMO)
43.The common organisation of agricultural markets, known as the CMO, is an integral element of the CAP.(10) It is part of Pillar 1, as more fully described in the Policy Memorandum(11) that accompanied the Bill for this Act.
44.The basic act is the CMO Regulation.(12) It is intended to provide a safety net for agricultural markets through the use of market support tools, exceptional measures and aid schemes for certain sectors (in particular fruit and vegetables and wine). It is also intended to encourage producer cooperation through producer organisations and specific rules on competition, and to lay down marketing standards for certain products.(13)
45.The CMO has an internal aspect covering market intervention and rules on marketing standards and producer organisations, and an external one covering trade with third countries (for example import and export certificates, import duties, administration of tariff quotas, export refunds). The CMO deals with the competition rules applicable to businesses, rules on State Aid for agriculture, and the reserve fund for crises in the agricultural sector.
46.For the purposes of understanding the provisions of this Act, the key parts of the CMO Regulation (and relevant delegated and implementing regulations) are: