Timing of CAP reform questioned
Pat Ivory, FDF assistant director, said further reform of EU policy, which will take place in the coming years, should be in line with the outcome of the next World Trade Organisation (WTO) talks.
Ultimately the approach may weaken the EU negotiating position at the trade talks and consequently give the upper hand to the USA, New Zealand and others, he said.
For certain dairy and meat products additional reductions in import tariffs may undermine the EU price system with the EU market having to cope with higher levels of imported product than intended under the trade agreement.
However, until the final outcome of the trade talks on import tariffs is known it is almost impossible to have a sensible reform of the CAP to prevent this type of situation arising.
"The danger is if the CAP reform is out of line with the world trade agreement it will almost certainly damage the competitiveness of the Irish food and drink sector. It could also unfairly restrict Ireland's access to key international markets.
"Access to international markets is absolutely vital for an economy, such as Ireland, with a small home market that consumes only around 10% of our milk and beef," he said. Mr Ivory said the question is not whether the EU reforms the CAP or not but in what direction and at what pace.
Agriculture and Food Minister Joe Walsh, who rejected the Fischler proposals at yesterday's EU Farm Council in Brussels, also questioned the timing of any further CAP reform.
He said Agenda 2000 was designed specifically to prepare for the current WTO round. That it had done so was obvious from the paper on modalities being submitted to the WTO.
It can hardly be strategically prudent to embark now on a further round of reform before they know the likely shape of the WTO round.
"There is a strong case in favour of the opposite waiting to see how the WTO round is shaping up before deciding on any further CAP reform that may be necessary," he said.
