EU policy ‘morally wrong’ as it undercuts developing countries

EUROPEAN Union farm policy is “morally wrong” because it undercuts agriculture in developing countries with import tariffs and export subsidies, said Caroline Spelman, the British environment secretary.

The Common Agricultural Policy “continues to distort trade by maintaining high EU prices,” Spelman said in a speech to the Oxford Farming Conference.

“This gives rise to high import tariffs and the use of export subsidies to clear market surpluses.”

The EU should cut direct payments to farmers, and rising world food prices make it possible to plan for the end of such subsidies, Spelman said. Farmers should instead be paid for taking steps to protect the environment, she said.

The CAP is the biggest single spending area for the EU, which budgeted €56.7 billion for agriculture and rural development in 2009, according to data from the bloc. The current rules end in 2013, and EU ministers are set to discuss changes to the regulations this year.

The British plans to work with other Group of 20 countries to end export bans on agricultural commodities, such as Russia’s halt to grain exports last year after drought reduced its cereal crop. France will head the G20 this year.

Minister for Agriculture, Fisheries and Food Brendan Smith referred to the Food Harvest 2020 report published last year which is an ambitious but realistic strategy for smart, green growth in the Irish agri-food sector over the next 10 years.

“It will play a huge part in our national economic recovery and, to that effect, it was incorporated in our national recovery plan announced last November.

“In that connection the CAP will be a key instrument underpinning the ambitions of our strategy. The negotiations on the future CAP are therefore of enormous importance for Ireland.”