EU Agriculture Trade: Are the Present Rules Fair?
EU agriculture trade plays a significant role in global markets, with the EU being the largest exporter and importer of agri-food products. Despite positive trade balances, fair rules are crucial to address unfair practices and ensure high-quality, sustainable, and innovative food production. The Common Agricultural Policy (CAP) reforms have enhanced market orientation and competitiveness, while trade agreements uphold EU standards.
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Are the present agriculture trade rules fair? EU Agri-food trade in context Willi Schulz-Greve European Commission DG Agriculture and Rural Development Unit A1 Global issues and relations with ACP
1. Trade is important for EU agriculture on local markets on national markets within the EU single market with countries outside the EU
EU in global agri-food trade Value of EU trade in agri-food products (exports and imports) at EUR 255.3 billion in 2017 2017 EU agri-food exports at EUR 137.9 billion, imports art at EUR 117.4 billion This makes the EU the world's largest exporter and importer of agri-food products
Major agri-food exporters and importers
EU in global agri-food trade Positive agri-food trade balance for 8 years in a row sustainably produced, safe, high-quality and innovative food the EU's calling card on international agri-food markets High value added products crucial - EU quality schemes help to cement recognition of EU products around the world
2. Agri-food trade needs fair rules on local and national markets unfair trading practices within the EU single market: common agricultural policy competition (state aid) rules with countries outside the EU Russian Ban US steel duties - bilateral and multilateral agreements
Role of CAP CAP reforms have increased the market- orientation and competitiveness of EU producers Farm policy has been in line with the EU's development objectives for many years EU no longer offers agricultural export refunds Market intervention only in case of crisis Direct support widely decoupled from production
EU in global agri-food trade Trade agreements benefit sector Maintenance of high EU standards, e.g. Sanitary and Phytosanitary measures Need for balance within trade agreements to assist sensitive sectors Need to harness globalisation
3. The EU is promoting fair rules in agri-food trade EU grants favourable market access conditions for countries across the developing world (free access for LDCs and unilateral concessions to developing countries) Economic Partnership Agreements allow partner countries to protect their sensitive agricultural products (exclusions and robust safeguards)
EU28 and Big5 imports from LDCs (to be updated with 2017 data)
Global context CAP of today is a pro-development policy This equips EU to take leading role in global agricultural initiatives - promote multilateralism and advocate for open and rules based trade Establish true partnership with developing countries to advance agriculture and rural potential Rural Africa Task Force
Policy cooperation G20/G7 work on food security and agriculture African Union European Union Ag Ministerials Task Force for Rural Africa
Summary Trade is important for EU agriculture Agri-food trade needs fair rules The EU is promoting fair rules in agri-food trade unilaterally in multilateral fora in bilateral and regional agreements
70 EU-27 EU-15 EU-25 EU-10 EU-28 EU-12 outlook 2016- 2020 actual expenditure 60 50 in billion EUR - current prices 40 30 20 10 0 2017 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2020 Export refunds Other market support Market-related expenditure Coupled direct aids Decoupled direct aids Rural Development
