WTO round talks worry dairy sector

The Irish dairy sector is extremely concerned that European Union negotiators are going beyond the Luxembourg reform agreement on the Common Agricultural Policy in negotiating the current World Trade Organisation round.

Martin Varley, director of policy development, with ICOS, the co-ops umbrella body, said there is a high risk that the EU negotiators are engaging in discussions on tariff reductions and export subsidies that would go beyond the Luxembourg agreement.

The scale of some of the tariff and export refund cuts being discussed would lead to another CAP reform in the milk sector before the Luxembourg agreement ends, he warned.

Mr Varley said the EU dairy sector agreed to the Luxembourg CAP reform on the basis that it would more than fully provide for the next WTO round changes in refunds, tariffs and domestic support.

Urging Agriculture Minister Mary Coughlan and the Council of Agriculture Ministers to ensure that their negotiators stay within the Luxembourg reform agreement, he said the EU dairy sector has led the way in reforming its supports in contrast to the United States.

Mr Varley said EU negotiators must not make further concessions in the negotiations until other partners in the WTO reciprocate the EU reforms.

In particular, it is essential that the US makes offers of substance in reducing its internal supports to match those in the last two EU reforms of the CAP. The US also needs to offer parallel reductions in export credits and disciplines on food aid, he said.