Export refunds plan angers leaders
But Agriculture and Food Minister Joe Walsh welcomed the move to kick-start the world trade talks which broke down in Cancun last September and have since been in abeyance. Rejecting suggestions that the goalposts were being moved, he said: “What we have here is a move towards facilitating a trade agreement. It is conditional on parallel moves from the other side. In my view, it remains within the Doha mandate.”
Donal Cashman, president of ICOS, the co-ops umbrella body, claimed that the offer to the WTO countries refers to potentially very damaging concessions in the EU position. “Any reference to the elimination of export refunds is unacceptable and is a potential ‘sell out’ on Irish and EU agriculture. If refunds are eliminated it is highly likely to force another reform of the milk sector including further price cuts.
“Such a reform would go beyond the Luxembourg Agreement, which was agreed on the basis that it would provide the necessary milk reforms that would cater for the next WTO agreement,” he said. Mr Cashman said it is essential that the Agriculture Council, which met in Killarney this week, sets out clear instructions for the Commission to stay within the Luxembourg CAP Agreement as well as within the EU January 2003 offer to the WTO, which specifies limited reductions in the expenditure on export refunds but not their elimination.
On market access, Mr Cashman said it is essential the EU January 2003 offer to the WTO is also adhered to, ensuring that sensitive dairy and beef tariff protection is maintained at appropriate levels. Mr Cashman said he would be raising the ICOS concerns with Minister Joe Walsh, who, as the Agriculture Council president, must ensure that the Commission stays within the Luxembourg Agreement and the January 2003 EU offer to the WTO.
IFA president John Dillon said the EU Commission has a duty to manage the European milk market in a manner that supports farm incomes.
“It is unacceptable that the Commission is already cutting market supports in advance of the peak milk production months in Ireland and in advance of the introduction of the dairy direct payment.
“The signal from EU Farm Commissioner Franz Fischler that the EU is prepared to phase out export refunds, if the US and other countries do likewise, is a particular threat to Ireland’s beef and dairy industries because of our high dependence on export markets,” he said.
ICMSA president Pat O’Rourke said he was shocked and dismayed at the EU move and urged Minister Walsh to remind the Commissioner that any reduction in export refunds clearly exceeds the mandate given to the Commission by the Council of Ministers.
president Malcolm Thompson called on Minister Walsh to use his influence to strengthen the EU hand against further WTO concessions.
