Mariann Fischer Boel
No.
67/05
July 5, 2005
EUROPEAN
COMMISSION WELCOMES US COMMITMENT TO FARM REFORM
The European Commission
yesterday welcomed the willingness shown by US President
George W. Bush to overhaul US agricultural subsidies.
It hopes that the President’s words, in an interview with
ITV1 on the eve of the G8 summit, will be translated into
genuine and far-reaching reforms which can find their
way through Congress when the US Farm Bill is up for revision
in 2007.
Mariann
Fischer Boel, EU Commissioner for Agriculture
and Rural Development, said:
“I am very encouraged to see an apparent willingness
by the US to look seriously at farm reform and put the
US Farm Bill on the table. We in Europe have just put
in place the biggest ever reform
of the Common
Agricultural Policy. We are prepared to bind that
reform contractually into a deal in the World Trade Organisation,
but our partners must match our ambition. So I hope the
US will follow our good example. Farm subsidy reform is
vital to boost world trade and to help the developing
world out of the cycle of poverty.
"In Europe, we have completely revolutionised the
way we subsidise our farmers. Our support payments are
no longer linked to what farmers produce, making them
non-trade-distorting. Instead, they aim to ensure high
environmental and animal welfare standards and encourage
innovation and diversification in rural areas. US payments,
by contrast, are still largely production-linked and therefore
seriously distort trade.
“In the ongoing world
trade talks, the EU has pledged to phase out all export
subsidies. But before agreeing on an end date, we need
our partners, in particular the US, to do the same, by
phasing out export credits and the use of dubious ‘food
aid’ to dispose of surpluses – which is not a way to ensure
long-term food security for developing countries.
"We in Europe are fully committed to making the latest
round of world trade talks
a true ‘development’ round. We hope to reach a comprehensive
deal in Hong Kong in December, because trade is better
than aid.
"On trade with the poorest countries, Europe leads
the way. We are by far the biggest importer of food from
the developing world. From 2009, the world’s 50 poorest
countries will be able to export ‘Everything
But Arms’ to Europe, completely free from tariffs
and quotas. It would be nice if this could be matched
by our partners.
"I hope the President’s words can be translated into
action. We are prepared to bind our reforms into a global
trade accord, but only if the US and others commit themselves
to similar reform. By Hong Kong, we hope that our trading
partners will be able to show more of their cards on all
aspects of the agriculture negotiation, as well as on
the other areas of the development agenda.”
Further Contact Information
Press and Media Relations
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
http://www.eurunion.org/PressRoom
Tel: 202-862-9552
Fax: 202-429-1766
