the development interest in reform of the european union's common agricultural policy
TRANSCRIPT
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8/8/2019 The Development Interest in Reform of the European Union's Common Agricultural Policy
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The Development Interest in
Reform of the European Unions
Common Agricultural Policy
Alan Matthews
Dublin, Ireland
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2007 The German Marshall Fund o the United States. All rights reserved.
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in writing rom the German Marshall Fund o the United States (GMF). Please direct inquiries to:
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About GMF
The German Marshall Fund o the United States (GMF) is a non-partisan American public policy and grant-making institution dedicated to promoting greater cooperation and understanding between the United States
and Europe.
GMF does this by supporting individuals and institutions working on transatlantic issues, by convening leaders
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GMF has seven ofces in Europe: Berlin, Bratislava, Paris, Brussels, Belgrade, Ankara, and Bucharest.
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he Development Interest in Reorm othe European Unions Common Agricultural Policy
A Report o he German Marshall Fund O he United States*
October 2007
A Mw
C
D, I
Hw CAP w k 3
E CAP 6
D CAP 1C 14
R 15
* T w I R C A P (CAP) P 8?, z G M F W F Hw F B, B, O 3-4,
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy3
How the CAP now looks
to developing countries1D 15 , E UC A P (CAP)
x ,
MS (199),
A (1999) Lx
A M- Rw CAP
(3) A
M ,
, , w 4,
C Mk Oz (CMO) w
6
CAP I 45
, x A
, w w
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w x
w k w q
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x k
x P O
x P w
D E
U CAP
w k
x k
w
NGO,
w
CAP
x
w x w q
k 1
1 S, x, Ox : Te Great EUsugar scam: how Europes sugar regime is devastating livelihoods inthe developing world();Milking the CAP: How Europes dairyregime is devastating livelihoods in the developing world();Stop the Dumping! How EU agricultural subsidies are damaginglivelihoods in the developing world(); Dumping on the World:how EU sugar policies hurt poor countries (4)
W CAP , w w ,
w
w k w CAP
w,
, z
E
x, w
EU q
,
,
w CAP F
w, CAP k
x I EU
,
k- w
B w CAP
,
Export subsidies
,
x
: W A; k J I Hw,
q
A w
, w
w EU x z
A, EU x
CAP w
w w x
Ex 4 6,
, 1
199 4 x
-Ax 1 , w
x
The new CAP is
a rather differen
animal to the
traditional policy
widely, and
rightly, criticized
by developing
countries.
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he German Marshall Fund o the United States4
EU w ( ) EU
w k
Hw, market access E U
M EU -
O MFN
- 3
U R, w
13 (G , 1) A
w,
, k , ,
5 w x
ad valorem q F,
EU q
w w ( w-
q w )
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w, , w
W Oz (WO) F x,
, , ,
F w
( A
L A )
(
j )
F ,
preferential access A
x E
U w GzS P (GSP) Hw,
Ax 1 (,k, w, , , ) N-Ax 1 - w A-x 1 I , () Ax 1
GSP , ,
L
, w
(GSP+) L D C
(LDC) x
q
GSP, E B A (w
9)
A, C, P (ACP)
x -
, C , w z
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C A w
- q
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EU O
w
E U
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C, Mx) M , E
U x - q-
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F, EU
direct support w
I, w k
()
k
, j
O j
j 3 w ; w
w w
, q
,
q
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy5
, , w, w k
j j w
P O
CAP (
) P w (
j, -,
) kw
A , P w
CAP 8,
W E C
3 w w
, 9
w
w
w
k CAP,
k
k
Hw,
, k q,
q -
,
P w
k ; w
, -
w
w w
wCAP
E U
policy coherence
for development
wk j
w ,
j w w
M
q C k j [ EU
] w
k
E C D
E C,
w C,
E P, C
E U k
(EC, 5) C
j E U
z
,
I
w Bx 1 w
z CAP
The new system
is clearly much
less distorting...
although it is
highly unlikely
that the paymen
of such large
sums to farmers
makes absolutely
no difference to
their production
decisions.
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he German Marshall Fund o the United States6
EU5 w w x( U S) -
( WO w
x ) I,
x 6,
w $6 (C,
) A ,
CAP
199 x
EU k
,
w x x w w
CAP , w
w
EU
k ,
U S, J, C, A,
Nw Z w- EU
,
-
(C, )
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A q
-
EU
W w
w x w
CAP
N w- 115
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CAP
, w
A x
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w k
x k- ,
w k w
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k EU k A
EU
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-
w
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D (OECD) w k
(A M,
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6; H K, 6; Pk, 6)
wk
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w ,
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3 T G A Pj (GAP) CGE w CGE w A GAP , f GAP T V 6, w w 1 T - , w f B w - , w EU OECD z (B H, )
Effect of the CAP
on developing countries2
The EU is a
particularly
important market
for developing
countries,
importing more
than the United
States, Japan,
Canada, Australia,
and New Zealand
together.
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy7
q k
z
w k
(, Ak B, 5)
z x D R,
kw w ( OECD)
z
z, w kw
, w
CAP
, w w
CAP
w 4
O w
x EU
W (5) H
4 O x USDA D (1) w E U - f w T EU - f f 1996 GAP 5 , EU w
Table 1: Agricultural Trade Positions in Developing Countries
CategoryLow-income countries
(44)
Lower-middle-income
countries (45)
Upper-middle-income
countries (26)
N
C 4 38 4
O 6 5 15
8 19
A
w 1 34 1
A
4 3
N x
C 4
O 18 11
16 18
A
w 3 11 5
A
13 6
Ex S: E, 6, UNCAD RAINS
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he German Marshall Fund o the United States8
Box 1: EU policy coherence for development commitments in agriculture
3.4.1. Common Agricultural Policy
The reorms o the Common Agricultural Policy (CAP) agreed in 2003 and 2004 make a strong contribution to reducing trade-
distorting eects o EU support to agriculture and enhancing positive social and environmental eects. In order to sustain
progress in that direction and in relation to development concerns:
The European Commission will complete the CAP reorm, notably in the sugar sector, with a view to achieving domesti-
cally an across-sector implementation o reorm and improving CAP coherence with the Doha development agenda. The
European Union will implement an Action Plan with accompanying measures or Sugar Protocol ACP countries, aimed at
supporting these countries in their adaptation to the reorm o the EU sugar regime.
In accordance with the Johannesburg Plan o Implementation, CAP is being increasingly adapted to sustainability goals.
CAP objectives include helping agriculture to ull its multiunctional role in society: producing sae and healthy ood,
contributing to sustainable development o rural areas, and protecting and enhancing the status o the armed environ-
ment and its biodiversity.
All CAP measures are regularly evaluated on the basis o a rolling plan and CAP reorm proposals are subject to exten-
sive impact assessments. The Commission is also committed to establish a monitoring system o the policy reorm in
the cotton sector, with a view to analyzing its impact on production and trade, with a report in 2009.
In the context o the DDA commitment on parallel elimination o all orms o export subsidies, the European Commision
envisages eliminating export reunds on agricultural and ood products.
3.4.2. Food aid
The European Union believes that ood aid should not be used as a tool or agricultural surplus disposal, with the eect o de-
pressing local production and normal commercial transactions. This is ully refected in its ood aid policy, which aims at sustain-
ing agricultural development in developing countries, promoting regional trade and solving ood crises without disrupting markets.
To attain developmental goals and to make development policy more ecient, the European Union is in avour o estab-
lishing WTO disciplines on ood aid. It has succeeded in including disciplines on ood aid as a subject or discussion at
the DDA (export competition).
The European Union also succeeded in opening the re-negotiation o the Food Aid Convention, with a view to den-
ing clear and coherent commitments on the part o its members. The European Union will take all necessary steps to
ensure that the new Agreement includes a code o conduct on ood aid policies, which would include practices with
benecial aspects in relation to development goals.
3.4.3. Sanitary and phyto-sanitary measures
The European Union will actively assist developing countries in order to acilitate them meeting the Sanitary and Phytosanitary
(SPS) standards, so as to increase their exports o agricultural and sheries products (including processed products).
The Commission will consider a systematic evaluation o the impact o its SPS measures on developing countries and
possible assistance. This will in turn be used to actively identiy appropriate measures or actions targeted at developing
countries.
Because o the perishable nature o ood and eed products and the short- term supply rigidity, a rapid intervention acil-
ity to deal with SPS problems should be developed and the appropriate resources should be identied.
Source: Commission, 2005b.
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy9
CAP w w 3
w
w, L A
x S A
q ,
S A, N A, S-S
A , /
LDC
, w
( q!) w w
w
,
GAP-AGR , w
EU w
x
F G () w w,
wk, E
U 81
w
OECD , J
3 US F B
z
w
w E U
j [ ]
k w
k
Hw,
w
GAP w CAP
wk5 U wk,
CAP
5 T kw f w
$5 w $143 ; w j
( j
, k
q, w
),
CAP
$4
w $5 k
;
k w
O CGE w
w
, -
A
w w
-- O ,
wk
w CAP
,
w
F, w
CAP
w w
-
,
w-
w w w
j w
CAP w
W CAP
w
,
j
j
The winners
and losers from
CAP reform are
different groups
of countries,
with the winners
concentrated
among the more
competitive
middle-income
developing
countries and
the losers
among the more
vulnerable, low-
income developin
countries.
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he German Marshall Fund o the United States10
, w
W
,
q
Market access (cereals, dairy, and meats).I D R WO,
E U
G- 5
, w
- k
(NAMA)
5
5 EU w
O 5 w k 5-6
9 S
w w U R
k
x, L A Hw
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8
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k
w , w w E
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x ,
q (RQ) w
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(SSM) k
B w
EU k
x Hw,
E U x
Hw w
EU
?
Market access (Mediterranean products and sugar).
E U
, ,
w N,
( W A ) , , , w
,
x F ,
,
w
S
G
E U w
13 ( k ),
w
EU ?
Elimination of export subsidies. WO H
K M C
x
x w
q
13 w
, ,
z
C F
5
1, w
Developing country interests
in further CAP reform3
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy11
q x
13 A
q w
q
U R [
w
q
U ]
EU x
, , , w
-Ax 1 ( ) A -
x ,
Domestic subsidies. A S F
P w w CAP H
Ck, w
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P O P w,
w z
mlange , ,
S A P S w
S F P S w
1 F w ,
k -13
w w
w 8 O
(
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W
w EU 13
EU
x WO ,
w
,
q
Ax U R A
A G
Bx W z
-
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k 13?
Free Trade Agreements and Preferential Agreements.
E U
(FA) w
U WO ,
, Hw,
z w
j q
q I EPA w
ACP , E U
- q-
, w , , , w x S
A I
w M,
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q S ,
,
EM W
- x EU P
A?
Cereals policy. C , w w
k k
A , EU C w
CAP H
Ck w w w
w EU
What seems clea
at this stage is
that there will
be no additional
EU money after
2013 for direct
payments. The
EUs scheme may
also be vulnerab
to challenge und
existing WTO rule
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he German Marshall Fund o the United States12
1
, w
W
?
Biofuels policy. EU
,
, k
,
, EU,
A
CAP ,
W
CAP ,
k
, x
,
x?
Attitudes to regulating the Production and Process
Method (PPM) characteristics of agri-food products.
S F P j, ,
- q
, , ,
w P z
w
w
q EU [w
,
w
] EU q
A
x j
w- EU ? I EU x
?
F, w q
CAP w
per se
Preference erosion. CAP
EU
k, x, w
P j
N,
x w j k
EU qk
(G, )
W
q xz
?
Food aid policy issues. F
D R
I w , w
k, w
q
x
EU k
w CAP ,
D
CAP ? W F
P
w x
Food standards. S
- w x
x EU k D
x
The EU is
considering
requirements
that imported
biofuels should be
accompanied by
an environmental
certificate
indicating the
sustainability of
their production
in developing
countries.
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy13
- , , w
I ,
w q
k
P
E
, z
EU H
x
w , ,
E U
,
q ?
Aid for trade. F, w k
k
P
k
q , , k
k O
wk ,
, k w
H
-z k
w
A
, w
ww D CAP
z
EU
w-
k w k ?
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he German Marshall Fund o the United States14
k CAP
I
CAP
15 , w
w, w k-
-
I
CAP k
, w
w Sw z
CAP
D w
, , ,
N, CAP w
, Bz
Bz k
G-
WO k
OECD k,
, ,
6
6 P (5)
k
CAP
I, CAP
,
w E w
w w
k
w A
D D R
j Hw,CAP k
w
wk
CAP
w k, w , w
M ,
w-
k k w q
-
Conclusions
4
Europes
unwillingness
to lower its
own farm trade
barriers is
the strongest
argument
developing
countries have to
keep their own
barriers in place.
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he Development Interest in Reorm o
the European Unions Common Agricultural Policy15
A, K M, W, 6 A R D D A,
Nw Yk, W Bk, P M
A, K M, W, 6 A
R D D A,
Nw Yk, P M, W Bk
A, K Vz, 6 D
?,
W Bk P R Wk P 391,
A 6, W, DC
Ak, MA B, J, 5 GA D C,
W Bk, W, DC
B, B H, L, G
EU C A P,
Economic Affairs, , , 18-6
B, A, 6 W C P Ex
Lz? O Bk Bx
M, MID D P N
93, W, DC, I F P
R I
C E C,
5 J S C
R G M
S M W C, E
P C E
C O D, B
C E C, 5
P C D: A
w M
D G, COM(5)134, B
C E C,
C F EU A ,
M A- P N -, DG
A R D, B
D, X, Sw A R, , 1 A
WO , M B ,
A R WO: R A,
A E R N 8, E
R S, US D A
E, K, 6 D D: F
P, I I E,
W, DC
F, F G, A,
:
E U ? P
E S G ,
A, S 13-15 ( )
G, P, W, J, W, J B,
M, 1 P G A
Mk, A E R N 96,
Mk E D, E
R S, US D A
G, P, ACP Ex
P E B S
S P P R A Aj C, G, I
C S D
H, K, R, 6
w , k
x : w
? C A, K M,
W , A R D
D A, Nw Yk, W Bk
P M
P, A, 5 A
: x , he
World Economy, 1-199
References
5
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he German Marshall Fund o the United States16
Pk, S, 6 W L: I D R D C,
W, C Ew
I P
W, A, 5 E
, European Review of
Agricultural Economics , 3, 3, 319-346
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