The Common Agricultural Policy in a World Context Jerzy Plewa Deputy Director-General for...

The Common Agricultural Policy The Common Agricultural Policy in a World Contextin a World Context

Jerzy Plewa Jerzy Plewa

Deputy Director-General for International Affairs

DG Agriculture and Rural Development

European Commission

CAPCAP in a World Context in a World Context

EvolutionEvolution of EU agricultural trade of EU agricultural trade

Impact on trade of CAP reformsImpact on trade of CAP reforms

Main objectives of EU agricultural trade policyMain objectives of EU agricultural trade policy• Multilateral, bilateral/bi-regional, unilateralMultilateral, bilateral/bi-regional, unilateral

IFAJ Congress – Brussels, 22 April 2010 2


EU27 Agricultural Trade 1999 - 2009 in billion € (Regime 4)

100

80

60

40

20

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Commodities Intermediate Final products Trade Balance (E-I)

<<<<

Impo

rt |

Ex

port

>>>

>

Source: EUROSTAT - COMEXT

Evolution of EUEvolution of EU agricultural tradeagricultural trade


EU27, US & Brazil Agricultural Exports (billion $)

108103

57

107 104

5552

14

52

0

20

40

60

80

100

120

140

avg99-01 avg07-09 2009 avg99-01 avg07-09 2009 avg99-01 avg07-09 2009

Source: EUROSTAT - COMEXT and Global Trade Information Services, Inc., GTA

EU27 US Brazil

Evolution of EU Evolution of EU agriculturalagricultural tradetrade


EU27, US & Japan and China Agricultural Imports (billion $)

56

107

42

8077

36

50 48

10

46 48

115

0

20

40

60

80

100

120

avg99-01 avg07-09 2009 avg99-01 avg07-09 2009 avg99-01 avg07-09 2009 avg99-01 avg07-09 2009

EU27 US Japan China

Evolution of EU Evolution of EU agriculturalagricultural tradetrade


Impact on trade Impact on trade of CAP reformsof CAP reforms

Reductions in EU price support, bringing EU prices in line with world prices

Cumulative % reduction in price support since 1991

-100

-80

-60

-40

-20

0

Soft wheat Durumwheat

Beef Rice Butter SMP Sugar

In nominal terms In real termsSource: European Commission – DG AGRI


Impact on trade of Impact on trade of CAP reformsCAP reforms

Export refunds, bn € and % of agricultural expenditure and exports

0%

5%

10%

15%

20%

25%

30%

35%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EU-12 up to 1994 EU-15 up to 2004 EU-25 up to 2006, then EU-27

% E

AG

GF

an

d e

xp

ort

s

0,0

2,0

4,0

6,0

8,0

10,0

12,0

Bn

EU

R

Refunds Refunds/exports Refunds/expenditure pillar1

8

Domestic support - WTO boxes (bn €)

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

green

blue

amber

AMS ceiling

Impact on trade Impact on trade of CAP reformsof 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 Main objectives of EU agricultural trade policyagricultural trade policy

9IFAJ Congress – Brussels, 22 April 2010

10

WTO Doha Round WTO Doha Round - the EU position- 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 2013.


Mexico

Chile

CANMercosur

ACP/EPAs

SA

W. BalkansEUROMED

UkraineCH

GCC

India

Bilateral agreements (including GIs)

CA ASEAN

GeorgiaMoldova

KoreaChina

Canada

USA

CH

Australia

ArmeniaAzerbajan

Norway

Concluded

Ongoing

Future

Cariforum

Canada


49% of EU agricultural exports

70% of EU agricultural imports

12

Main objectives of GIs Main objectives of GIs agreementsagreements

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


13

Reformed CAP- Reformed CAP- “Development Friendly”“Development Friendly”

Agricultural Import from DC's - average 2006-2008 in % and billion €

47

53

71%

48%

21%

33%

28%

34%

39%

0

15

30

45

60

75

EU27 USA CAN AUS NZ JAP Big 5

0%

15%

30%

45%

60%

75%

average 2006-2008 %imports from DC's

• EU - largest market for developing countries (value of the EU agricultural import from DCs > 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)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 reduced Export refunds and trade distortion supports substantially reduced • EU supports to the regional integration of DCsEU supports to the regional integration of DCs


ConclusionsConclusions

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.


Thank you for your attention!Thank you for your attention!


The Common Agricultural Policy in a World Context Jerzy Plewa Deputy Director-General for...

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