The Common Agricultural Policy in a World Context Jerzy Plewa Deputy Director-General for International Affairs DG Agriculture and Rural Development European.

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Presentation transcript:

The Common Agricultural Policy in a World Context Jerzy Plewa Deputy Director-General for International Affairs DG Agriculture and Rural Development European Commission

CAP in a World Context Evolution of EU agricultural trade Evolution of EU agricultural trade Impact on trade of CAP reforms Impact on trade of CAP reforms Main objectives of EU agricultural trade policy Main objectives of EU agricultural trade policy Multilateral, bilateral/bi-regional, unilateralMultilateral, bilateral/bi-regional, unilateral IFAJ Congress – Brussels, 22 April

3 >>> Source: EUROSTAT - COMEXT Evolution of EU agricultural trade agricultural trade

IFAJ Congress – Brussels, 22 April Source: EUROSTAT - COMEXT and Global Trade Information Services, Inc., GTA EU27USBrazil Evolution of EU agricultural trade

IFAJ Congress – Brussels, 22 April EU27USJapanChina Evolution of EU agricultural trade

IFAJ Congress – Brussels, 22 April Impact on trade of CAP reforms Reductions in EU price support, bringing EU prices in line with world prices Source: European Commission – DG AGRI

IFAJ Congress – Brussels, 22 April Impact on trade of CAP reforms

8 Domestic support - WTO boxes (bn ) Impact on trade of CAP reforms IFAJ Congress – Brussels, 22 April 2010

General objective Promoting the European agricultural sector in world trade Multilateral – WTO (DDA) successful agreement on the modalities on agriculture under the DDA Regional/bilateral agreements Improve market access for agricultural products by negotiating or revising bilateral agreements and by resolving trade irritants Unilateral contribute to sustainable economic development in particular in developing countries Main objectives of EU agricultural trade policy 9 IFAJ Congress – Brussels, 22 April 2010

10 WTO Doha Round - the EU position Thanks to the CAP reforms, the EU has been in a position to support a high level of ambition in the DDA: on market access: at least 54% of average tariff cuts; on domestic support: 80% reduction of OTDS (Overall Trade-Distorting Support); on export subsidies: 100% elimination of subsidies and other forms of export support by IFAJ Congress – Brussels, 22 April 2010

Mexico Chile CAN Mercosur ACP/EPAs SA W. Balkans EUROMED Ukraine CH GCC India Bilateral agreements (including GIs) CA ASEAN Georgia Moldova Korea China Canada USA CH Australia Armenia Azerbajan Norway Concluded Ongoing Future Cariforum Canada IFAJ Congress – Brussels, 22 April % of EU agricultural exports 70% of EU agricultural imports

12 Main objectives of GIs agreements Protect as many EU GIs as possible in Partners territories Achieve a high level of protection for EU GIs in Partners territories Solve difficult cases: conflicting generic use conflicting TMs IFAJ Congress – Brussels, 22 April 2010

13 Reformed CAP- Development Friendly EU - largest market for developing countries (value of the EU agricultural import from DCs > 50 billion EURO (more than US, JAP, CAN, AUS and NZ together)EU - largest market for developing countries (value of the EU agricultural import from DCs > 50 billion EURO (more than US, JAP, CAN, AUS and NZ together) DFQF access to the EU market (EBA, EPA, GSP+)DFQF access to the EU market (EBA, EPA, GSP+) Export refunds and trade distortion supports substantially reducedExport refunds and trade distortion supports substantially reduced EU supports to the regional integration of DCsEU supports to the regional integration of DCs IFAJ Congress – Brussels, 22 April 2010

Conclusions The EU remains the leading agricultural trader in the world; EU exports are essentially processed high value-added products; in imports final products also dominate but commodities and intermediates play important role; High quality is the main feature and the future of our products in the global market; Reformed CAP- more trade and development – friendly; Strategic objectives: DDA remains a priority, but FTAs (and GI agreements) become increasingly important. 14 IFAJ Congress – Brussels, 22 April 2010

Thank you for your attention! 15 IFAJ Congress – Brussels, 22 April 2010