Europe's common agricultural policy is broken – let's fix it!
The internet silence following the collapse of the Doha Round on 30 July last has been striking. It appears not only the negotiators but also the commentators feel the need for a well-earned August break. In a piece for last Sunday’s Irish Sunday Business Post, I tried to summarise my own views on why the Round collapsed.
We’re used to the arguments that the CAP’s subsidies and tariffs are very bad for many desperately poor farmers in the developing world, with some going as far as to say that the EU has blood on its hands but now comes a piece of medical research which suggests that EU farm subsidies are responsible for more than ten thousand diet-related deaths among European citizens.
The European Commission has published its plans to divert up to a billion euros from CAP underspends to a new fund to help farmers in the developing world to increase productivity in the face of the world food crisis. Higher food prices have meant lower CAP expenditure on market measures such as intervention, storage and export refunds and the Commission has suggested redirecting parts of these savings to agricultural production in the third world. Commission President José Manuel Barroso, Development Commissioner Louis Michel and Farms Commissioner Mariann Fischer-Boel have all spoken enthusiastically about the idea, but there are growing rumblings of opposition, from both the Council and the Parliament, both of which will have to approve the plan if it is to become a reality.… Read the rest
The European Commission has published its plans to divert up to a billion euros from CAP underspends to a new fund to help farmers in the developing world to increase productivity in the face of the world food crisis. Higher food prices have meant lower CAP expenditure on market measures such as intervention, storage and export refunds and the Commission has suggested redirecting parts of these savings to agricultural production in the third world. Commission President José Manuel Barroso, Development Commissioner Louis Michel and Farms Commissioner Mariann Fischer-Boel have all spoken enthusiastically about the idea, but there are growing rumblings of opposition, from both the Council and the Parliament, both of which will have to approve the plan if it is to become a reality.… Read the rest
The description of a Fortress Europe has often been applied to the CAP. But just as the CAP has undergone significant internal reform since the first faltering steps under Commissioner MacSharry in 1992, there have also been substantial changes to the CAP’s external trade regime. The EU still maintains high tariffs on specific agricultural imports, but in fact the majority of the EU’s agricultural imports (including here fish as well as highly processed products like beverages and tobacco products) enter the EU duty-free, either because the Most Favoured Nation (MFN) tariff is zero, or because the EU has granted duty-free preferential access.… Read the rest
The description of a Fortress Europe has often been applied to the CAP. But just as the CAP has undergone significant internal reform since the first faltering steps under Commissioner MacSharry in 1992, there have also been substantial changes to the CAP’s external trade regime. The EU still maintains high tariffs on specific agricultural imports, but in fact the majority of the EU’s agricultural imports (including here fish as well as highly processed products like beverages and tobacco products) enter the EU duty-free, either because the Most Favoured Nation (MFN) tariff is zero, or because the EU has granted duty-free preferential access.… Read the rest
On Monday 14 July the European Parliament agriculture committee will discuss its response to the Commission’s legislative proposals for the CAP health check. The committee’s rapporteur is Luis Capoulos Santos, a Portuguese socialist MEP and former Portuguese Minister for Agriculture. His working document, suggests a number of changes to the Commission proposals, notably a hard ceiling of 500,000 euros on CAP payments to individuals, in addition to a ‘progressive modulation’ that would see payments above 100,000 euros top-sliced to provide additional funding for the EU’s farmland conservation and rural policies.
Full details at the WTO’s website. WTO Director General Pascal Lamy said:
… Read the rest“These revised texts set the stage for a decisive moment in the Doha round. Ministers and other senior officials will soon arrive for intensive negotiations the week of 21 July. They need negotiating documents which are clear and precise as they consider the complex issues of agriculture and industrial goods trade. These texts go a very long way in that direction. These negotiations have been long and tough but the prize awaiting us should we reach agreement is worth the effort. A deal to open trade in agriculture and goods means more growth, better prospects for development and a more stable and predictable trading system.
French farm leaders have asked President Sarkozy to organise a Special Summit of EU heads of government on ‘EU ambitions for the agriculture and agri-food sectors.’ Perhaps the word ‘EU’ should be replaced by ‘French’.
The current high prices for arable crops mean that farmers in the US and Europe are reconsidering whether putting their land into government-financed conservation schemes is such a good idea financially. The EU is well on the way to releasing all its set aside land back into production, and in the US Congress is considering whether to allow farmers to leave long term conservation contracts without facing any penalties.