The Russian ban on the import of certain food products from the EU (and some other countries) has led to a chorus of appeals from member states and from farm groups for aid and compensation. The Russian ban has created an immediate problem in the fruit and vegetables sector, where the summer harvest for fruits is in full swing, there is a high dependence on the Russian market, and the produce is perishable with few immediate alternative outlets. But the overall scale of the problem needs to be kept in perspective. In this post, I present the data on the countries and products affected.… Read the rest
WTO failure on trade facilitation agreement puts question mark over Doha timeline
On Thursday this week, the WTO Director-General Robert Azevêdo admitted to failure in concluding the negotiations to adopt the Protocol of Amendment on the Trade Facilitation Agreement (TFA) by 31 July as had been agreed by Ministers at the WTO Ministerial Conference in Bali last December. The Protocol of Amendment was intended to start the process to formally insert the trade facilitation deal into the overall WTO Agreement.
The TFA was part of a carefully-balanced package at Bali designed to get substantive negotiations on the Doha Round again underway. In addition to a series of decisions and declarations on trade facilitation, agriculture, cotton, development and least developed country (LDC) issues, the Ministerial Conference had set a deadline of the end of 2014 for the Trade Negotiations Committee to develop a clearly-defined work programme on the remaining Doha Round issues.… Read the rest
The draft 2015 CAP budget
The annual budget is an important statement of any organisation’s strategic priorities. The EU budget is no exception, but its sheer size and complexity makes it difficult for the interested lay person to interpret and to understand.
The Commission proposed a draft budget (DB) for 2015 in June, and the figures are now under negotiation between the two legislative institutions. Since the Lisbon Treaty, the annual budget is agreed by co-decision between the Council and the Parliament, although the outcome must observe the ceilings agreed in the 2014-2020 multiannual financial framework (MFF).
Once the draft budget is proposed, the Council first adopts its position and forwards it to the European Parliament (EP).… Read the rest
Geographical indications (GIs) in the US-EU TTIP negotiations
The US Agriculture Secretary, Tom Vilsack, was in Brussels this week, among other things to have lunch with EU Agriculture Ministers during their monthly Council meeting. He also took the opportunity to have a discussion with Commissioner Ciolos on some of the agricultural issues that are proving difficult to resolve in the ongoing negotiations on the US-EU Transatlantic Trade and Investment Partnership (TTIP) free trade agreement.
One of these issues is the EU demand that the US should recognise and protect the EU’s list of geographical indications (GIs). Geographical Indications are defined in the WTO as “indications which identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin”.… Read the rest
Food safety in the US-EU TTIP negotiations
There is widespread concern that the ongoing negotiations on a transatlantic free trade area between the US and the EU, known as the Transatlantic Trade and Investment Partnership (TTIP), may result in a watering-down of EU food safety standards under US pressure to remove measures which are perceived as barriers to trade.
According to a report from the US-based NGO the Centre for Food Safety, “many analysts believe that a central aim of the negotiations is to dismantle many food safety regulations that corporations view as impediments to trade and profitmaking.”
Less dramatically, the European Consumer Organisation BEUC notes in its position paper that: “[…] the EU food legislative framework guarantees consumers a high level of protection and information.… Read the rest
The 2013 CAP reform and biodiversity
A recent paper in Science (unfortunately, behind a paywall unless you have access through a library or individual subscription) written by 21 authors from across Europe provides a very timely review of the impact of the recent CAP reform from the perspective how it addresses the EU’s biodiversity commitments. UPDATE There is a short summary by one of the authors here.
The EU’s overall objective in its Biodiversity Strategy for 2020 agreed in 2011 is to halt the loss of diversity and to restore degraded ecosystems. Specifically, Target 3A is to “maximise areas […] covered by biodiversity-related measures under the CAP”.… Read the rest
What is happening to EU agricultural productivity growth?
Agricultural growth can come about through bringing new resources into production (new land, extension of irrigation, or input intensification per hectare) or through raising the productivity of existing resources. The appropriate measure of productivity growth in this context is Total Factor Productivity (TFP) growth, which is defined as the aggregate quantity of outputs produced by the agricultural sector divided by the aggregate quantity of inputs used to produce those outputs.
This measure contrasts with partial productivity measures such as growth in labour productivity or land productivity (yields per hectare) because an increase in these partial productivity measures can be achieved by increasing the intensity of use of other inputs (for example, crop yields can be increased by applying greater amounts of fertiliser or using more labour).… Read the rest
Overcoming the deadlock on cultivation of GM crops in EU countries
EU policy on genetically-modified organisms (GMOs) for use in food and agriculture has been deadlocked for a number of years as member states, industry stakeholders and non-governmental organisations remain conflicted about the use of agricultural biotechnology. Three examples of the policy differences and contradictions that characterise this dossier include the following.
How to interpret cross-compliance
Tomás García Azcárate, who maintains a very useful blog on the CAP with links to his university course notes and a series of CAP capsules, recently paid me the compliment of discussing a comment I made in an article on CAP greening on the function of cross-compliance. My comment was that “… the strong political support for the view that direct payments are, in part, recognition of the costs that the society asks farmers to bear through cross compliance implicitly undermines the “polluter pays principle. If farmers who do not receive direct payments are not expected to observe cross compliance standards, then these do not form the environmental baseline”.… Read the rest
Incentivising soil carbon sequestration
Soil contains a huge amount of carbon, twice as much as in the atmosphere in the 0-30 cm layer alone. However, continuous cultivation over a long period has reduced stocks of soil organic carbon (SOC, which I will abbreviate here to soil carbon), often to dangerously low levels. The EU’s Joint Research Centre estimates that some 45% of the soils of Europe have a low or very low organic matter content (0-2% organic carbon). The main mechanism for soil carbon loss is associated with ploughing, due to increased decomposition of SOC due to soil aeration and soil aggregate destruction, increased aggregate turnover and a reduction in aggregate formation.… Read the rest