the common agricultural policy in a world context jerzy plewa deputy director-general for...
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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
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IFAJ Congress – Brussels, 22 April 2010 3
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
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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
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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
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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
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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
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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.
IFAJ Congress – Brussels, 22 April 2010
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
IFAJ Congress – Brussels, 22 April 2010
49% of EU agricultural exports
70% of EU agricultural imports
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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
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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
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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.
14IFAJ Congress – Brussels, 22 April 2010
Thank you for your attention!Thank you for your attention!
15IFAJ Congress – Brussels, 22 April 2010