Fischler claims support for EU’s WTO position
“I should say that the majority of the WTO membership, 75 countries in total, share that position,” he told the St Patrick’s Day Council of Agriculture Ministers in Brussels, referring to a proposal to adopt a Uruguay Round type formula put forward by the EU and other like-minded countries, instead of the latest WTO formula for tariff cuts.
“The key political message we have to send is that the negotiations should be pursued after March, with a view to establishing modalities and making the next WTO ministerial Conference in Cancun a success. I remain optimistic”, said Fischler.
“We have shown realism from the beginning, we have moved our domestic policies in the right direction, and we should continue to do so in the future”, he told the Agriculture Council.
Turning to his CAP mid-term review proposals, the Commissioner warned that viability of the milk sector is threatened by EU farmers’ 30% higher price than average world prices.
“This difference makes it increasingly difficult to export. Indeed, our share of the world market is continuously coming down, where others take over. We therefore lack competitiveness. The Council already reacted partly to this lack of competitiveness by deciding, under Agenda 2000, to decrease institutional prices. I say ‘partly’, since I consider the decisions not going far enough to better ensure the long-term competitiveness of the sector. Therefore our proposal is to add two additional steps of price reduction and to advance implementation by one year. The prolongation of the quota regime until 2015 allows that such a restructuring can take place under relatively favourable conditions”.
“The quota prolongation would also ensure milk production to remain in less favourable areas. International and budgetary margins determine to a great extent our room for manoeuvre”, said Commissioner Fischler.
“This proposal is a serious effort to make the sector more competitive by reducing prices against a reasonable compensation, and prolonging the quota to allow orderly restructuring”, he said.
