No export refund cut-off before 2015

AN export subsidies cut-off point in 2015 or 2017 is visualised if last week’s framework for concluding WTO negotiations forms part of an eventual WTO trade deal.
No export refund cut-off before 2015

Agriculture Minister Joe Walsh said the framework is most satisfactory for Irish agriculture.

Decoupled direct payments will be in the Green Box and not subject to reductions.

The agreement provides for self-selection by WTO members of sensitive products for special tariff protection treatment. Ireland had already indicated at an EU Council of Ministers meeting, in January 2003, that beef and dairy products would have to be treated as sensitive, with the EU market adequately protected from third country imports, and remaining remunerative for EU producers.

It is envisaged by the WTO that all forms of export assistance will become subject to rules. Food aid must be genuine and not merely surplus disposal.

EU Agriculture Commissioner Franz Fischler said domestic farm support levels would remain untouched by the WTO talks.

“We can assure our farmers that there’s no risk we cannot keep our reforms as they are,” he said.

IFA President John Dillon said the Irish Government must be extremely vigilant in WTO negotiations over the next 18 months to ensure that the EU Commission does not concede cuts over and above the CAP reform.

He said strong support for agriculture came only from Ireland, France and Hungary in Geneva.

“The EU has already offered an average cut of 36% in import tariffs, based on the Luxembourg and Agenda 2000 CAP reform cuts. There must be no question of exceeding these cuts.”

“It is also crucially important that the commitment already obtained by Ireland that beef and dairy products would be classified as sensitive products is implemented.”

The IFA leader said phasing out of export refunds will be particularly difficult for Ireland, and should only be progressed if there is a parallel cut in export supports by the US and other developed exporting countries.

Ireland and like minded countries must demand that commitments by the US and others are fully honoured, said ICMSA President Pat O’Rourke.

If export refunds were to be eliminated, it should be phased the longest period possible.

Up to 30% of Irish agri-food exports depend totally on export refunds, he noted.

The United States’ largest farm group, American Farm Bureau Federation, gave its blessing last Monday to the progress at Geneva.

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