The looming Mercosur tragedy

Weak political leadership in Europe looks likely to doom the EU-Mercosur free trade agreement in a vote among EU Member States later this week. Denmark, as current Council President, has indicated it intends to schedule a vote at Ambassador level (COREPER II) to take place either Thursday or Friday this week. To be approved, the Agreement must gain the support of 55% of Member States (currently, 15 out of 27) representing at least 65% of the EU population. The Agreement can be blocked by a blocking minority which requires at least 4 countries representing at least 35% of the EU population. If a country abstains, its vote does not count either for the proponents or opponents.

As the thresholds are calculated against the total EU membership, and not just those who cast a yes/no vote, an abstaining country makes it more difficult both for proponents to gain a qualified majority and for opponents to form a blocking minority.… Read the rest

Waking up to Brexit – two weeks on

In Charles Dickens’ Oliver Twist, nine-year old Oliver, fed up with the miserable gruel he and the other boys in the parish workhouse were given, walks up to the master and asks for more. The next day, there was an announcement on the workhouse gate offering five pounds to anyone willing to take Oliver off the hands of the parish.

The UK, it seems, also wants more from the European Union, not only access to the single market but also exemption from the free movement of labour. It has put not one, but two Olivers, to work on this request. Oliver Letwin is the government minister (yet another old Etonian at the top of the Conservative Party) who is responsible for a new unit (the ‘Brexit unit’) within the Cabinet Office. This unit will lead the civil service work for the Brexit negotiations and prepare options and advice for the new prime minister.… Read the rest

WTO dimensions of a UK 'Brexit' and agricultural trade

Following a first round of discussions on UK demands for a renegotiation of the terms of its membership of the EU at the European Council meeting last month, it now seems that the February meeting of the Council will agree on some package of measures and promises in response to UK Prime Minister David Cameron’s demands. It will then be up to Cameron to decide if this package is sufficient for him to campaign to stay in the EU in the referendum promised to take place before the end of 2017 and possibly later this year.

Even if Cameron decides to campaign in favour of staying in, there is no guarantee that the UK voters will follow him. A possible Brexit, or UK exit from the EU, remains a distinct possibility.

If a Brexit were to occur, the UK would have to decide on what agricultural and agricultural trade policy it wished to pursue outside the EU.… Read the rest

Forum for the Future of Agriculture 2015 – Remarks on EU agricultural trade policy

The 8th Forum for the Future of Agriculture (FFA2015) was held yesterday in Brussels. This annual meeting, organised jointly by the European Landowners’ Association and Syngenta, attracts around 1400 participants and has established itself as one of the principal fora for debate on the future of agricultural policy. What makes the event interesting is that it attracts a good number of participants from among farmers and the agri-business sector while also being open to environmental NGOs and others critical of current agricultural practices.
The theme for yesterday’s meeting was the UN Sustainable Development Goals and possible implications for EU agriculture, with contributions from both Commissioners Hogan (Agriculture) and Vella (Environment, Maritime Affairs and Fisheries). Sessions explored issues ranging from global food security (do we really need to produce more food?), developing a sustainable agriculture (is organic the only legitimate solution?), implications of the circular economy concept for jobs and growth (is there more to this concept than simply pricing in the value of externalities?)… Read the rest