On Tuesday (18 June), Agriculture Commissioner Dacian Ciolos gave an address at the ACP-EU joint parliamentary assembly. The Commissioner covered the subjects of food security, climate change and reform of the Common Agricultural Policy.

image expired

Commentators in Europe (and some of those involved in the negotiations themselves) have expressed exasperation at the slow progress of CAP reform debates, which were to result in a reform package by the end of the Irish EU presidency later this month, though most parties in the tripartite negotiations now believe this will not be the case.

Nevertheless, Ciolos suggested a reform package would be "adopted next week" in his address.

The main focus of the ACP (African, Caribbean and Pacific Group of States) is on poverty reduction and sustainable development. The states have an interest in CAP reform negotiations in Europe because, as Ciolos highlighted on Tuesday, 71 percent of agricultural exports from developing countries are destined for the EU – more than trade with the United States, Canada, Japan and Australia combined.

The Agriculture Commissioner said that, although controversial export refunds would be retained, they would only be used in "crisis situations." He pointed out that their role in trade has been greatly reduced in past years; €10 billion was spent on export refunds twenty years ago, whereas the EU now spends €160 million.

Even so, as the Parliament was preparing its reform proposals in January, European Greens were scathing of the decision to maintain the controversial subsidies. Dutch MEP and Green agriculture spokesperson Bas Eickhout said, "MEPs regrettably voted to maintain damaging export refunds which dump EU farm products onto fragile markets in developing countries, and chose not to monitor the effects of the CAP on long term food production capacity in developing countries."

A report from the Scottish Agricultural College (now SRUC) in 2011 suggested the mechanism is bad for the EU itself, and even industrial farm lobby Copa Cogeca acknowledges the refunds should not be used on exports to developing or ACP countries.  

Although the refunds will be retained, according to Ciolos, CAP reforms "should help to ensure that our agricultural policy does not affect the development of agriculture around the world." He said the main thrust of reforms would be directed towards improving "European agricultural potential", and improving sustainability within the agriculture sector.

Ciolos said he would champion fairer direct payments, as these "are an essential aid to income, because farm incomes in Europe are low compared to other economic sectors, and the number of farmers is falling." He also said greening would go ahead to prevent biodiversity loss and reduce agriculture's contribution to climate change, although conservation groups have warned that the erosion of greening conditions risks making it too easy to meet these requirements.

Turning to the need for targeted funding to tackle the inequality, poverty and lack of access to vital resources that lead to hunger, Ciolos said continued commitment to development funding is essential, and that both donor and recipient states should maintain a focus on agricultural development.

He said development work would need to be delivered on a responsible, local level, with farmers themselves as the focus. The Commissioner added that he would like to see investment focused on supporting appropriate research, facilitating knowledge transfer and developing and strengthening producer organizations.