Author (Person) | Davies, Eric | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Publisher | ProQuest Information and Learning | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series Title | In Focus | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series Details | 27.6.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Publication Date | 27/06/2003 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Content Type | News, Overview, Topic Guide | In Focus | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
'This decision marks the beginning of a new era. Our farm policy will fundamentally change. Today, Europe has given itself a new and effective farm policy.' Thus spoke EU Agriculture Commissioner Franz Fischler about the agreement reached by EU farm ministers on 26 June 2003. Although the Common Agricultural Policy (CAP) has long been criticised, it was the publication in 1997 of the Commission's Agenda 2000 report which effectively started the current debate on reforming the CAP. Agenda 2000 highlighted the need to reform the CAP - and particularly to reduce its cost - if the Union was to make a success of enlargement. The latest agreement was reached after weeks of negotiations, following Ministers' failure to clinch a deal at the Agriculture and Fisheries Council on 11-12 June. Discussions - chaired by the Greek Presidency of the Council - were largely based on the Commission's midterm review of the CAP, published in July 2002. Hard bargaining resulted in what was effectively a compromise agreement, which both proponents and opponents of reform can claim benefits them. Although the Commission said that the CAP will be very different in future, the French ministry of agriculture claimed the agreement 'preserves ... the essential principles' of the CAP (BBC). France, Ireland, Portugal and Spain were reportedly the Member States most reluctant to see the biggest reform pushed through, which would have seen an end to all production subsidies. In order to avoid farms being abandoned in some areas, Ministers agreed that Member States can retain 'a limited link between subsidy and production under well defined conditions and within clear limits' - essentially meaning that 'single farm payments' can be made where they are associated with the environment, food safety and animal welfare standards. The compromise text received a mixed response from the outside world, with many groups critical of the deal. The BBC reported that farmers and unions feared 'they would be driven out of business without the subsidies they have been accustomed to', and the Director of the UK's Consumers' Association described the reform as 'a tragic missed opportunity', saying 'once again it is consumers who will pay the price' (a Commission press release claimed the 'new CAP will be geared towards consumers and taxpayers'). Although Commissioner Fischler said 'We are saying goodbye to the old system which significantly distorts international trade and harms developing countries', aid organisations argued the agreement doesn't tackle the problems of over production and the dumping of surplus produce on world markets. Oxfam described it as 'a disaster for the poor, for small farmers, for the environment, for taxpayers, and for the credibility of the EU as a forward looking institution.' The EU wanted to get agreement on reducing subsidies in advance of the September meeting of the World Trade Organisation in Cancún, Mexico. The EU wants to see global trade opened up, but as long as it subsidises its own agricultural industry it remains vulnerable to the charge of protectionism. The Financial Times pointed out that the 'decoupled' subsidies agreed by the EU (the 'single payments') are 'deemed non-trade distorting under World Trade Organisation rules', and so might escape the cuts which the Cancún meeting is expected to agree. The European Commission summarised the key elements of the new regime:
Some of the changes agreed will be implemented in 2004, with the single farm payment starting in 2005 (although a two-year transitional period will push the deadline to 2007 for some Member States). Links:
Eric Davies Keywords: Reform of CAP |
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Subject Categories | Business and Industry |
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