CAP Perspectives in the light of WTO
Dirk AhnerDirectorate General for Agriculture and Rural Development
Prague, 26 May 2006
Visions of long-term agricultural and rural development in the EU
2
The Future of the CAP
Three different angles
The financial perspective
The balance between pillar 1 and pillar 2
and the future of rural development policy
The development of CAP market and
income support policies
3
The Financial Perspective
The Financial Perspective 2007-2013
=> Budget stabilisation and burden sharing
=> Decrease of expenditure for agriculture and
rural development in real terms
The financial review of 2008/09
=> « Reassessment of the financial framework »,
=> including the CAP
4
The Financial Review 2008/09
→ Possible subjects based on Agenda 2000
discussions
– Cofinancing of direct payments
– Progressive reduction of direct payments over time
– Reduction thresholds applied to direct payments
– Capping
→ Modulation
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Modulation
AGENDA 2000 - Optional Modulation (I) CAP Reform 2003 – Compulsory
Modulation European Council 2005 – Optional
Modulation (II) Review 2008 – Common approach?
6
The Future of Rural Development Policy
Strengthening of pillar 2
Rural development policy 2007-2013
Tasks and challenges for the future
7
Reasons to strengthen 2nd Pillar
Rural development measures allow targeted, proactive actions
Rural development policy works in a flexible and de-centralised way, in a framework of partnership
Rural development policy is perceived positively by the public
Rural development policy can be defended as “Green Box” compatible
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Rural Development
2007-2013
« LEADER Approach »
Objective 1 Competi -tiveness
Objective 2 Environment
+ Land
Management
Objective 3 Economic
Diver. +
Quality of Life
National co-financing
Rural Development Fund
Overall Architecture
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Rural Development Policy in the EU
Challenges and questions for the future:
Analytical and conceptual questions
Policy content
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Market Policy and Direct Payments (Pillar I)
The international trade environment
WTO Doha Round
Bilateral agreements
Unilateral commitments
11
Market Policy and Direct Payments
Perspectives
Direct payments – continuation of reform path
Market management instruments – reflection needed
- for external reasons (phasing out of subsidised exports)
- for internal reasons (growing regional imbalances in an enlarged internal market)
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Market Opportunities
High quality/high value added production- geographical designations; traditional products- quality policy
Biomass for industry and energy=> New opportunities - climate change and high oil prices - ambitious policy targets - significant impacts=> But also uncertainties …
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