News Release
Franz Fischler
No. 07/03
February 4, 2003
FRANZ FISCHLER, EU FARM COMMISSIONER, CALLS FOR FAIR BURDEN-SHARING
IN WTO FARM TALKS
Speaking
at the National Press Club in Washington, DC, today, EU Farm
Commissioner Franz
Fischler told journalists that the European Union is committed to farm trade
liberalization that benefits developing countries. Commissioner Fischler also
expressed his conviction that the US and the EU have a common interest in the
successful conclusion of the negotiations in the Doha
Round and that they share a responsibility to cooperate in order to move the
process forward.
“The
EU is fully committed to ensuring the success of the Doha
Development Round. We are ambitious, pragmatic and we take full account of
the interests of a vital group of countries in the negotiations—the developing
countries. Many people talk of the need for trade liberalization to help developing
countries but do little more than talk about it. The time has now come for them
to do something about it. Europe has taken the lead. We already import more from
them than the US, Japan, Australia and New Zealand together. We have already decided
to open our market to all imports from the poorest countries in the world. We
are still waiting for the US to follow our example. We want that the developed
countries grant zero duty access for at least 50% of imports from developing countries
and other provisions intended to facilitate policies for their food security.”
Commissioner Fischler said the EU’s agriculture proposal to the World Trade Organization
(WTO) is balanced.
“It
requires efforts from all WTO members, including the EU. We need a fair burden-sharing
among developed countries, and not proposals which put the burden only on others.”
Commissioner Fischler explained that the EU took a decision late last year to
fix its agriculture budget at 2006 levels until 2013.
“We
will have a budget which is declining in real terms while our number of farmers
is increasing by 50% due to EU enlargement.
Which means: There is not more money for EU farmers but less.”
WTO
The EU has proposed a substantial liberalization of farm trade:
•
55% in trade distorting subsidies;
•
45% on export subsidy expenditure;
•
36% on tariffs.
“We
have some conditions however. The de minimis rule is a gigantic loophole in domestic
support commitments which must be closed. In its present form, it allows that
a whopping $8 billion in highly trade distorting US farm subsidies completely
escape discipline. The de minimis loophole would also allow the US to double its
ceiling on trade distorting aid. Indeed, were it not for this, the US would already
in 1999 have exceeded their amber box limit,” the
Commissioner added.
“On
export subsidies, we are only prepared to cut further if all forms of export subsidy
are disciplined. The Uruguay Round saw only that form of export subsidy used mainly
by the EU disciplined—there will be no more unilateral disarmament by the EU.
Export credits, State Trading Enterprises and dumping of surpluses under the cover
of food aid must all be brought under discipline,”
Commissioner Fischler stressed.
“Our
non-trade concerns are genuine concerns or societal interests which must be taken
account of. Trade is important to the EU but it does not take precedence over
all other interests nor indeed does it need to. It would be foolish in the extreme
for anyone to assume that this is just some negotiating chip the EU has introduced
which will be let go in the end. It is a key element of our position in these
negotiations,” he warned.
Agricultural
Policy Reform
Two weeks ago, the European Commission put forward the third substantial reform
of the EU's agricultural policy in a decade.
The primary objectives of this reform are to:
- make
farmers more competitive;
- promote
more market-oriented and sustainable farming;
- maintain
a flourishing countryside.
On the EU’s ongoing agricultural reform, Commissioner Fischler said:
“We
want to cut the link between subsidies and production and give the farmer an income
payment independent of how much wheat or beef he produces. Together with being
more trade friendly, this will allow farmers to respond to market signals rather
that the level or availability of premia. The payments will be conditional upon
compliance with strict binding standards in environmental protection, food safety,
animal health and welfare. These agricultural functions and contributions are
very important to European society and will not be delivered through market forces.
If these proposals are agreed, trade distorting domestic support will be further
reduced and export subsidization will also fall. However, these reforms are not
being put forward because of the WTO negotiations but rather to better meet our
internal objectives and priorities and, in particular, to enable farming to respond
to the concerns of our citizens.”
The Commissioner explained that the Commission wants to spend more money on programs
to boost the environment, food quality and safety, organic farming or animal welfare.
“This
is what we call 'rural development.' In order to do this without increasing overall
EU farm spending, we propose to cut direct payments for farmers by 1% a year,
reaching a 6% reduction in 2012. Small farms will be exempted. But further cuts
are necessary to finance additional reforms, like the upcoming changes in our
sugar market. This is why we have to go for an additional cut in direct payments,
reaching 13% for the larger farms in 2012,”
he concluded.
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Press Contacts:
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Willy Hélin
202-862-9530
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Wilfried Schneider
202-862-9523
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Maeve O'Beirne
202-862-9549
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