The EU’s tariff regime for agri-food imports is highly discriminatory, intended to benefit developing countries in particular. But tariff barriers are still important for Southern Mediterrananean countries and South Africa.
The Team
Alan Matthews
Economist
Alan Matthews is Professor Emeritus of European Agricultural Policy in the Department of Economics at Trinity College, Dublin, Ireland. His major research interests are agricultural policy analysis, the impact of international trade on developing countries, and computable general equilibrium analysis of trade and agricultural policy reforms. He has worked as a consultant to the European Parliament, the OECD, the Food and Agricultural Organisation of the United Nations and the UN Industrial Development Organisation, and has been a panel member in a number of WTO Dispute Settlement procedures. He is currently President of the European Association of Agricultural Economists but writes here in a personal capacity.
Recent blog posts written by Alan Matthews
More thoughts on the European Innovation Partnership for Agriculture
The slowdown in total factor productivity growth in agriculture needs to be reversed, but there continues to be a lack of clarity about the Commission’s proposals and what they will mean in practice.
Will the right tariff average stand up?
New tariff database allows assessment of EU agricultural protection in a global context.
Macroeconomic conditionality and rural development funding
The Commission’s proposal to make rural development funding conditional on macroeconomic good behaviour in the next MFF might not be a good idea.
The political economy of eliminating sugar quotas in 2015
Sugar producers and processers line up against sugar users in the debate on eliminating sugar quotas in 2015.
Where stand the MFF negotiations on the CAP?
The MFF negotiating box dealing with CAP issues gives a good idea of the extent of the disagreements that must be bridged before a successful outcome.
Achieving green growth in EU agriculture
The EU’s efforts to promote green growth in the food and agriculture sectors do not seem commensurate with the level of ambition required.
Delivering environmental benefits through agri-environment schemes
New IEEP study shows the inappropriateness of mandating fixed and uniform management actions across the whole of the EU to achieve environmental goals. Existing entry-level agri-environment schemes in member states involve very diverse management practices which are often revised in the light of experience.
The greying of Europe’s farmers
Europe’s farmers are getting older because of fundamental economic and demographic factors. There is little that age-specific agricultural policies can do to reverse or even slow this trend.
Court of Auditors wants clearer objectives for post-2013 CAP reform
Court criticises the Commission’s legislative proposals for failing to identify clear objectives which would allow the performance of CAP policies to be properly assessed.
How the CAP contributes to world market food price volatility
How the CAP’s tariff policy contributes to international price volatility.
Latest EU AMS notification confirms declining trend in WTO amber box support
The latest EU notification of domestic support to the WTO contains no surprises, and documents the continuing downward trend in amber box support in the EU total.
Are the CAP 2013 proposals a major reform?
A new Notre Europe study sees some merits in the Commission’s CAP 2013 proposals while arguing that it falls short of a major reform, but the proposals are defended as an initial step which can be further corrected and amended in future reforms.
End the use of export subsidies in the 2013 CAP review
The opportunity should be taken to remove export subsidies from the Single Common Market Organisation regulation in the review of the CAP post-2013.
EU biomass targets put pressure on global land resources
The EU’s renewable energy targets and not just biofuel mandates have potentially adverse effects for rural communities in developing countries, but requiring sustainability criteria is only a partial solution.
The cost of flat-rate agri-environmental measures
New study of agri-environment schemes shows that it is worth going for more individualised, complex schemes in spite of the much higher administrative costs implied by this approach.
Leaked Commission figures sound death knell for biodiesel
Leaked figures for the Commission’s default values for carbon emissions from biofuels including indirect land use change suggest biodiesel might no longer be eligible to be counted against the EU’s renewable transport energy target.
Agricultural Council discusses the single CMO
The first Agricultural Council under the Danish Presidency chaired by Danish Agriculture Minister Mette Gjerskov discussed the Commission’s proposed single CMO regulation last Monday. Divisions were evident over sugar quotas, but a positive sign was the number of ministers who expressly opposed the continued use of export subsidies.
The political feasibility of CAP redistribution
The demand from the new member states for greater convergence in the value of the direct payment per eligible hectare in the current CAP negotiations means that the redistribution of budget resources between the member states is now firmly on the reform agenda. But it also makes reaching agreement much more difficult.
The CAP at Fifty
Today, the European Commission has launched the fiftieth anniversary of the Common Agricultural Policy. The Commission’s campaign wants to emphasise the CAP as a cornerstone of European integration, as a policy that has provided European citizens with half a century of food security and a living countryside. No one wants to spoil a good party, but of course the overall balance sheet of the CAP remains controversial, to say the least.
More on the European Innovation Partnership for Agricultural Productivity and Sustainability (EIP-A)
Some further information on the Commission’s plans for the EIPA-A is now in the public domain, but we are still waiting for a Communication to spell out how exactly it will contribute to strengthening innovation in the agri-food sector.
Changing global agricultural power
The UK Oxford Farming Conference commissioned a report to examine the dynamics and implications of global agricultural power. What is meant by agricultural power and why might it be important?
Commission projects unchanged sugar market following quota elimination
The Commission’s expectations for the EU sugar market following the end of sugar quotas in 2015 are contained in its market outlook to 2020 publication published last month. The elimination of quotas is expected to have a negligible impact on the EU sugar market.
The changing landscape of agricultural support
While levels of agricultural support and protection have been falling in OECD countries, agricultural support in a number of (but not all) emerging economies has been increasing. Rising agricultural support in emerging economies may lead to these countries breaching their WTO commitments, and this trend will raise difficult questions about the reasonableness and fairness of these commitments.
Europe’s hens to have a happier New Year
Europe’s laying hens are looking forward to a happier New Year, but what will happen to the eggs from the 50 million birds still kept in conventional battery cages?
Environment Ministers fail to endorse Commission’s greening proposals
The refusal of the Environment Council meeting on 19 December last to endorse the Commission’s greening proposals in its legislative proposals for CAP reform has been interpreted as a victory for agricultural interests attempting to water down the greening element in these proposals. But this interpretation may underestimate the extent to which there is genuine doubt about the effectiveness and environmental value of the measures that the Commission proposes.
The challenge of moving to the regional model
Moving to the regional model of basic income support poses considerable challenges for member states which currently use the historical model. An Irish proposal seeks to create a linkage between the mechanism used for converging payments across member states and flattening payments within member states, but will it fly?
CAP reform conference December 19th 2011
Commission conference with academics and researchers on the CAP reform legislative reform proposals on 19 December 2011.
Agreeing the allocation of CAP funds between Member States
Ireland proposes an allocation key based on Pillars 1 and 2 combined which has the virtue of consistency but which would need further modifications to make it acceptable to the new member states.
What Durban means for EU agriculture
Decisions at the Durban climate conference will have potentially important effects for the challenges facing EU farming as it attempts to reduce its carbon footprint in order to meet EU greenhouse gas emission reduction targets.
Launch of E-learning CAP course
New online learning course about the CAP launched.
Agricultural consequences of the eurozone crisis
The EU agricultural and food sectors, and the negotiations on CAP reform, are unlikely to remain unaffected by the continuing eurozone crisis.
New Commission study on impacts of Doha Round
New study suggests the EU along with China would be the major winner from a conclusion of the Doha Round negotiations, with limited impacts expected for EU agriculture.
Russian WTO accession by end year?
There is now a real prospect that Russia will gain membership of the WTO before year end, which would bring benefits for the EU agri-food sector.
Farmers and the European Globalisation Adjustment Fund
The European Trade Union Confederation has questioned whether farmers should be entitled to support from the European Globalisation Adjustment Fund in the next financial framework period.
The legislative timeline for CAP reform
MEP Mairead McGuinness points out that the timeline for the legislative procedure on CAP reform is very tight, with even the possibility the current regime would need be rolled over one year into 2014.
Updated analysis of Commission legislative proposals
Updated and revised analysis of the trade and development implications of the Commission’s legislative proposals published.
Analysis of the Commission’s legislative proposals due tomorrow Wednesday 12 October
ICTSD have published a draft paper that I have authored examining the trade and development implications of the measures likely to be included in the Commission’s legislative proposals on CAP reform tomorrow. Click on the heading for the link.
The future role for the European Innovation Partnership for agricultural productivity and sustainability
Information on how the new European Innovation Partnership for Agricultural Sustainability and Productivity will work is scarce, but initial soundings raise a question mark over how much it will really do to reverse the declining growth in agricultural productivity.
Production effects of moving to flatter structure of direct payments
Redistributing direct payments between and across Member States will have only marginal effects on EU production, recent studies show.
Updating the base period for SPS entitlements
Fears that proposal to use 2014 as the basis for new updated entitlements in Commission’s legislative proposal could lead to a land grab that would disrupt land rental markets.
Problems viewing graphs in posts using Internet Explorer
Apologies that there appears to be a problem in viewing in-post images in previous posts using Internet Explorer, which means that often the browser does not display the associated graphs. At the moment I don’t understand the reason for this, but if you want to see the graphics, then please use an alternative browser such as Firefox, Chrome or Opera.
What is the likely cost of greening Pillar 1?
The Commission estimates that the gross cost of the green measures in Pillar 1 will be at least €5 billion, although the cost to farmers will be lower because reduced market supply will help to raise product prices. Is this the best way of spending €5 billion to maximise the value of the additional environmental benefits produced by farmers?
The future for national envelopes and Member State flexibility in Pillar 1
National envelopes to be replaced by broader scope for recoupling in Commission’s draft Regulation on direct payments post 2013.
Court of Auditors launches broadside against deficiencies in agri-environment schemes
Court’s criticisms raise fundamental policy choice for the Commission as it seeks to shift more CAP spending to environmental public goods
The mystery of the EU’s disappearing AMS
Or, how the EU managed to reduce its reported current Total AMS by rewriting the way it reports support to fruit and vegetable production.
How will Rural Development funds be allocated among the member states?
Simulations of different criteria for the distribution of Pillar 2 funds in the Commission’s draft impact assessment show how political is the choice of objective criteria.
Global food prices remain very high
The Commission has published its latest international food price monitoring newsletter for September. Continuing high food prices fuel concern about food price inflation in developing and emerging economies.
Commission’s impact assessment of direct payments changes
Commission impact assessment confirms very limited redistribution across Member States under the preferred option in the multiannual financial framework.
Draft market organisation regulation confirms market orientation with safeguards
The end of sugar quotas and a strengthened market disturbance clause are the highlights of the draft proposal on common market organisations.
