farmpolreformjmtfarm burconvjan82007

Information about farmpolreformjmtfarm burconvjan82007

Published on May 8, 2008

Author: Vincenza

Source: authorstream.com

Content

Slide1:  Farm Policy Reform: The European Experience Jean-Marc Trarieux, Agricultural Attaché Delegation of the European Commission to the U.S. American Farm Bureau Federation Annual Convention January 8, 2007 - Salt Lake City, Utah Slide2:  The European Union 27 Member States 490 million people 13 million farmers Outline:  Common Agricultural Policy = EU Farm Bill Policy objectives’ reforms Key elements of the CAP reform Budget impact Trade impact WTO implications Outline CAP reform at a glance:  From product price to direct producer support… – gradual reduction of support prices into safety-nets – partial compensation of product support drop by shift to producer support …to decoupling of direct aids… – single farm payment based on historical references… – …requiring compliance with set of existing statutory standards …and to a better balance of support – enhancement of Rural Development policy instruments to meet new standards – shift of funds from market support to rural development – financing new market reforms with redistribution of direct aids CAP reform at a glance The CAP : from Past to Present:  The CAP : from Past to Present Productivity under control; Competitiveness; Enlargement; Sustainability 2003 CAP reform process – key actors:  Farmers Taxpayers (budget) Consumers (quality) Public and private stakeholders Environmental and other NGOs ... WTO OECD Net exporters Net importers ACP LDCs MERCOSUR ... EU World Common Agricultural Policy EU enlargement (structural challenges) 2003 CAP reform process – key actors Slide7:  Regional GDP 2001 < 50 50 - 75 75 - 90 90 - 100 100 - 125 >= 125 No data Index EU 25 = 100 Source: Eurostat 2003 CAP reform – key objectives:  European model of agriculture: a competitive EU agricultural sector environmentally friendly production methods quality products contribution to rural landscapes dynamic sustainable rural economy impact on world stage (developing countries) 2003 CAP reform – key objectives Slide9:  Strengthening Rural Development Minimal market support Cross-Compliance 2003 CAP reform – Objectives and measures Slide10:  Post 1992- CAP evolution – Budget allocation Slide11:  billion €  EU 10  EU 12  EU 15  EU 25 CAP outlays - evolution since 1980 in absolute terms Structural change and increasing productivity …:  Structural change and increasing productivity … + 50% - 25% 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 '000 Annual Working Units Net Value Added / Annual Working Unit in '000 € EU-15 Slide13:  Agricultural Budget: from 0.63% in 1990/92 to 0.45% in 2005/06 and 0.35% in 2013 … with a falling agricultural budget - 46% Share of the EU agricultural expenditure in the Gross National Income of the European Union (1991-2013) - (constant 2004 price) 0.30% 0.35% 0.40% 0.45% 0.50% 0.55% 0.60% 0.65% 0.70% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 in % Share of CAP budget in the EU GNI Slide14:  Reduction of export subsidies since 1992 -80% Slide15:  EU agricultural trade structure balanced move from quantity to quality EU agricultural exports mainly (70%) in high value added products price-dependent bulk commodities represent just 7 % of EU exports net export position of the EU decreased in all sectors most of this decline is driven by CAP reform most gains go to Southern Hemisphere (Brazil)… EU = largest market for developing countries Evolution of EU role in world agricultural trade Structure of EU and US agricultural trade:  Structure of EU and US agricultural trade EU net export share (reform impact):  EU net export share (reform impact) A declining share of EU net exports on world markets EU net export share (pre-reform):  EU net export share (pre-reform) ... even for sugar and dairy products Slide19:  CAP reform and WTO negotiations Decoupling of payments means shifting direct payments to the green box (non-trade distorting payments) Prices reduction means reduced need for export refunds The EU has done its homework with its CAP reform: -move on domestic support -move on export subsidies Conclusions on EU farm policy reform:  Conclusions on EU farm policy reform Key factors: - consumers concerns - budget pressure - WTO commitments - EU enlargement Key elements: - decoupling (ends subsidy hunting) - conditionality on payments Key lesson: ‘Farm policy reform is a marathon, not a sprint’ Slide21:  Thank you for your attention ! [email protected] www.eurunion.org

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