Cairns Group criticised
30 September 2001
Speaking in September at a Conference on European Agriculture, Commissioner Fischler criticised the "extreme position" of the Cairns Group, which wants to subject agricultural trade to the same disciplines as other trade. He highlighted how the EU was willing to say "Yes" to further liberalization if all countries move in the same direction and "Yes" to further reductions in export subsidies, providing this was part of a broader approach, but was not willing to accept agriculture being treated in the same way as other sectors.
Editorial comment
As the Commissioner has pointed out, CAP reform is not driven by WTO negotiations, rather the process of CAP reform determines EU positions in the WTO. Thus the EU is willing to accept further liberalisation and further reductions in export refunds because the process of CAP reform in certain sectors is reducing the EU's need for them. The EU also wants to see other countries reduce their tariffs on agricultural exports, and move to direct aid payments to make EU exports more "competitive". If third country markets are opened up under these conditions then EU exporters potentially have a lot to gain. This needs to be borne in mind as ACP countries seek to determine their responses to EU positions in the WTO. Put simply, with high levels of direct aid EU farmers will be able to live with liberalization, but can ACP farmers live with liberalization when they have no access to such direct aid programmes?
