United Kingdom recommends radical reform of CAP over next 10 to 15 years - Lively reactions from Commissioners Fischler Boel and Mandelson

Brussels, 05/12/2005 (Agence Europe) - Ten days off the ministerial meeting of the WTO in Hong Kong, the United Kingdom, on 2 December, published a document proposing a radical reform of the Common Agricultural Policy (CAP), which was drawn up by the Chancellor of the Exchequer Gordon Brown, in close collaboration with his colleague for Agriculture, Margaret Beckett. The report states the view that a CAP which is viable in 10 to 15 years should not include "any guaranteed prices, no support for export or any subsidies for production or consumption", and that "customs tariffs for the agricultural sectors" should be "gradually aligned on the lowest levels of taxation in force in other sectors of the economy". Mr Brown and Ms Beckett also wanted agriculture to be subject to European competition rules, and believe that removing guaranteed agricultural prices would bring inflation down by 0.9% in the EU. According to its authors, this proposal will help to move discussions on world trade forward. "Society could finance agriculture less, whilst drawing greater benefits from it, consumers could have assured food supplies with cheaper, healthier and better quality food, and the developing countries would achieve considerable levels of growth", according to the report.

The European Commissioner for Agriculture, Mariann Fischer Boel, reacted to the report with extreme reservation. "Of course, we are only too pleased to receive contributions to the debate on the future of the CAP, but we do not feel that this is the right time", she commented in a press release. She also pointed out that all of the European governments, including the British government, approved the agreement setting market agricultural expenditure in October 2002, to be valid until 2013. Ms Fischer Boel also reiterated the fact that their debate on the future of the CAP is scheduled between now and 2013, with such aspects as an examination of the implementation of reforms decided upon in 2003, which is scheduled for 2008-2009. "In the meantime, the Commission is confident that the Member States will stick to the mandate we received" providing for the EU's concessions within the framework of the Doha Round not to lead to any further reforms of the CAP. Ms Fischer Boel also stressed that the major reform of 2003 has scarcely entered into force, and that any further reflection "would have to take account of the effects of the Doha Round, which will probably not make themselves felt until between 2008 and 2014".

The European Commissioner for Trade, Peter Mandelson, said that Mr Brown went "too far" in his requests for a reform of the CAP. Mr Brown should be aware that "the poorest developing countries, which depend on one or two raw materials for their entire trade and agricultural exports, need customs duties to be kept in place, a certain degree of protection and organised trade", warned Mr Mandelson, adding: "because otherwise, you are in a process whereby you are getting rid of the preferential access enjoyed cheaply by these countries". Addressing Mr Brown directly, he went on to say: "if this is what he is calling for, he should ask himself whom this will benefit. It will not be the poorest developing countries, I can assure you of that".

"This vision of the future of the CAP is not the European vision and it is not the French vision. In fact, European agriculture, like most of the systems of agriculture in the world, fulfil functions which cannot be guaranteed simply by the market, notably the food sovereignty of our continent, a harmonious use of our territories and a recognised model of hygiene and safety", protested French Minister for agriculture, Dominique Bussereau, for his part. In a press release, he wonders about "the relevance of this kind of publication, coming as it does just a few days before the opening of an international conference which is of capital importance for the interests of the EU and, in particular, for its agricultural interests". He went on to voice fears that such an initiative, undertaken by the Member State currently holding the Presidency of the Council of the Union, "may weaken Europe's position in this difficult round of negotiations".