5-7 May agriculture Informal

Date: 09/05/1996

UNION agriculture ministers discussed a paper prepared by the Italian presidency, warning of the threat posed to European agriculture by moves towards free trade agreements with third countries. Italy warned of the danger of “sacrificing” EU agriculture “on the altar of free trade”. A majority of ministers echoed Rome's concern, urging the Commission to study the potential agricultural consequences of future agreements. Sweden and Denmark took the other view, looking to further reforms to bring EU prices closer to world levels, while the UK suggested that transitional arrangements and anti-dumping rules could limit the damage. Aware that free trade accords were primarily the responsibility of their foreign ministry colleagues, farm ministers concluded that they should have more input in setting the terms of future free trade accords. Agriculture Commissioner Franz Fischler warned against allowing agreements to force the pace of Common Agricultural Policy reform. The Commission stressed it was necessary to assess whether they fulfilled a “politically realistic objective”.

BRITISH minister Douglas Hogg took the opportunity to impress on his colleagues the strength of feeling in the UK against the world-wide ban on British beef exports. Although BSE was not formally on the agenda, Hogg remained the centre of attention throughout the meeting. He warned that the ban could be “very damaging to the perception of Europe in Britain”. Fischler spoke of his plans to propose an easing of the ban on certain beef-based products.

IRISH minister Ivan Yates announced that beef market trends and sales promotion would be the main topic of the next informal meeting of EU agricultural ministers, to be held in Killarney, in the south-west of Ireland on 22-25 September. “The immediate after-effects of the current difficulties in the beef market will hopefully have diminished by then and we can have a fruitful exchange of views on this important topic in a calmer atmosphere,” said Yates, whose country - which takes over the EU presidency on 1 July - is heavily reliant on beef exports. Irish beef exports have been under severe pressure since the latest BSE scare began in March.

OFFICIALS confirmed that Fischler would meet his US counterpart Dan Glickman in the course of a conference in Vienna at the end of this week. The main item for discussion will be the dispute over the EU's ban on growth promoting hormones in meat production. Washington has threatened to take the Union to a dispute settlement panel in the World Trade Organisation over the issue. Faced with tight world grain supplies, the two men will also discuss the situation on the market.