3 2 nd International Agribusiness Congress Argentina: Food For The World Agricultural Negotiations at the World Trade Organisation A European Perspective Sir Ben Gill President: National Farmers Union (England & Wales) Confederation of European Agriculture

4 Perceptions (1) Perception of European support as it was in the 1970sPerception of European support as it was in the 1970s Reality is different:Reality is different: –1992 Macsharry Reforms –1999 CAP 2000 Reforms –2003 Fischler Reforms Reality is support is capped and, with inflation and enlargement, decreasing and redistributedReality is support is capped and, with inflation and enlargement, decreasing and redistributed

5 Perceptions (2) Reality is that US support is moving in the opposite direction to the EUReality is that US support is moving in the opposite direction to the EU Perception of the US as free tradersPerception of the US as free traders –1996 US Federal Agricultural Improvement and Reform Act (FAIR Act) –1998 First Emergency Aid package –2002 US Farm Security and Rural Investment Act (FSRIA Act)

6 Reality EU is the largest importer of farm products from developing countriesEU is the largest importer of farm products from developing countries EU is a net importer of agricultural products 2001 = $6.5bn (US net exporter)EU is a net importer of agricultural products 2001 = $6.5bn (US net exporter) EU export subsidies have fallen from 25% of value to 5.2% or from bn to bnEU export subsidies have fallen from 25% of value to 5.2% or from bn to bn

7 Internal Support Measures CAP Reform essential ingredientsCAP Reform essential ingredients –Multifunctionality of EU farming –Reform of the Dairy Regime –Introduction of concept of decoupling –Concept of cross compliance –Introduction of Modulation and Financial Discipline –Move from Blue Box to Green Box

8 Key Issues for debate What is Fair Trade?What is Fair Trade? Is there such a thing as Free Trade?Is there such a thing as Free Trade? WTO issuesWTO issues –Internal Support measures –Export subsidies –Import tariffs –Non Trade Concerns

9 Export Subsidies Not just direct export subsidies but alsoNot just direct export subsidies but also Food AidFood Aid Export CreditsExport Credits State Trading EnterprisesState Trading Enterprises Cross subsidisationCross subsidisation Aggressive use of devaluationsAggressive use of devaluations

10 Non Trade Concerns (1) MultifunctionalityMultifunctionality –Food security –Viability of rural communities –Environmental concerns –Animal welfare TRIPS issuesTRIPS issues

11 Non Trade Concerns (2) Consumer Related Issues Geographical IndicationsGeographical Indications Clear labellingClear labelling Genetically Modified cropsGenetically Modified crops Precautionary Principle definitionPrecautionary Principle definition

12 Conclusion What do we ALL want: StabilityStability Fairer tradeFairer trade Fair returnsFair returns Fairer Competition RulesFairer Competition Rules Sustainable Farming SystemsSustainable Farming Systems