With the partial agreement in Hong Kong to end agricultural export subsidies by 2013, the EU has, quite predictably, harvested the fruit borne of the lack of realism and tactics shown by the European Commission in negotiations over past months.

The agreement may have provision, in theory, for a parallel in the dismantling of the various forms of export aid, it also introduces risks for European farmers.  While refunds (European export subsidies) are totally transparent, the types of aid found in competing countries – export credit guarantees, disguised food aid, monopoly practices with State-run enterprises – are difficult to control.
The EU must therefore be quite uncompromising on these other forms of aid between now and April 30, 2006, i.e. the period when restrictions to be imposed must be set.  This is an initial prerequisite for a balanced implementation of the partial agreement concluded yesterday.
A second prerequisite is the efficient handling of the issue of the US marketing loan, the system whereby the Federal State offsets losses suffered by producers selling grain on the market below the support price.  The European Commission was wrong not to ask for this to be removed as part of the dismantling of export aid.  This will now have to be removed under terms negotiated for support for producers.
And finally, any end to refunds is incompatible with the extension of markets in European grain and grain-based products.
 Contacts:
AGPB – Pascal Hurbault, tél 01 44 31 16 25
AGPM – Béatrice Guénebeaud, 01 47 23 48 32
FFCAT- Yves Boulay, tél 01 53 00 90 00