The EU calls for a 60% cut in trade-distorting support

Following the Montreal 'Mini-Ministerial' meeting the EU Agriculture Commissioner Franz Fischler claimed on July 30th 2003 that the EU was 'ready to deliver a huge cut in trade-distorting domestic support of 60%' and to eliminate 'export subsidies for certain products' and reduce them for others. However this was made conditional upon other forms of export support being similarly disciplined. Commissioner Fischler also reaffirmed the EU's willingness to cut tariffs by an average of 36% and expressed a willingness to 'open or expand tariff rate quotas for certain sensitive products'. He also called for better protection for quality products and more concessions on non-trade concerns, and also reiterated the call for all developed countries to grant complete duty and quota-free access to exports from least developed countries. Comment: The EU's willingness to cut trade distorting domestic support by 60% is effectively conditional upon WTO acceptance of EU systems of support for addressing non-trade concerns, that is to say international acceptance of what the EU defines as non-trade-distorting forms of support. Such acceptance will of course remove any WTO disciplines from such forms of support, which are currently expanding under CAP reform. USDA projections of the budgetary impact of the Commission's original proposals for CAP reform show a 55% reduction in expenditures on market measures. With further reform pending the EU looks well placed to be able to meet these targets within its current trajectory for CAP reform.

Bibliographic Details

Main Author:	Technical Centre for Agricultural and Rural Cooperation
Format:	News Item biblioteca
Language:	English
Published:	Technical Centre for Agricultural and Rural Cooperation 2003
Online Access:	https://hdl.handle.net/10568/52631 http://agritrade.cta.int/Back-issues/Agriculture-monthly-news-update/2003/September-2003
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