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Europe Daily Bulletin No. 10557
Contents Publication in full By article 17 / 40
SECTORAL POLICY / (ae) agriculture

COPA opposed to greening and capping of aid

Brussels, 20/02/2012 (Agence Europe) - In a position paper on the future common agricultural policy (CAP) adopted at the end of last week, the presidents of Copa and Cogeca say that the European Commission proposals on the reform which “impose further mandatory environmental constraints on farmers … will actually undermine farmers' ability to meet the challenges” of food security and contributing to economic growth and job creation. They are critical in particular of greening and capping of aid.

The answer that the Commission should deliver, according to Copa President Gerd Sonnleitner, is “to improve the productivity and efficiency of EU agriculture”. If EU agriculture can respond positively to these challenges, “we believe the public will recognise that the cost of the CAP - less than 1% of EU public expenditure - is an extremely good investment”, he says.

The two agricultural organisations are particularly critical of the “greening” of 30% of agricultural aid. “Applying the same three measures across-the-board to 13 million EU farms is not the best way to achieve environmental benefits and will, at the same time, increase farm costs, reduce production and have a negative impact on farmers' already low incomes”, argues Sonnleitner. Copa-Cogeca is calling for the CAP to focus on measures which ensure green growth in the future - measures which benefit the environment at the same time as maintaining production capacity, efficiency and employment. “There should be an EU list of measures so that farmers can make a choice based on their own farm situation.”

The Copa president also criticises Commission proposals to cap direct payments. He argues that this “runs counter to achieving a more dynamic and efficient sector since it would penalise farms which have improved their structure, or wished to do so through economies of scale”. “We welcome the proposal to target CAP direct payments to active farmers but believe that member states need more flexibility to decide the most appropriate way of doing so”, he added.

Copa-Cogeca is also calling for “fair and equitable” treatment of farmers, taking into account differences in conditions, when redistributing the budget among member states. The move towards a more uniform hectare payment within member states proposed by the Commission “will have extremely adverse effects on some farmers and they must be given more time and flexibility to adapt”, the organisations say.

With increasing market volatility, Cogeca President Paolo Bruni calls for “strong safety nets” and measures to manage the markets. Copa-Cogeca is also calling for EU farmers' positioning in the food chain to be strengthened to enable them to get a better return from the market. This can be achieved by strengthening producer organisations (POs), such as cooperatives.

Bruni, therefore, welcomes the Commission proposal to extend the product coverage for recognition of POs as a step in the right direction, but calls for a more precise definition of POs, their aims and tasks and a guarantee of “legal certainty” under Community competition law. “We also need specific measures to eliminate unfair and abusive commercial practices in the food chain”, Bruni says.

Copa-Cogeca welcomes the Commission's overall approach on EU rural development policy, especially the introduction of six updated priorities. It argues, however, that the Commission has failed to provide sufficient measures geared specifically to meeting the new challenges ahead. It calls for a new article supporting green growth measures under rural development: for example, measures to encourage resource efficiency or the use of residues for bio-energy production.

Both presidents warn that, although the Commission subscribes to simplification, many of its proposals will make the system less transparent to the public and much more burdensome for farmers and governments. They both say that this reform must bring simplification. They conclude: “Our proposals for a strong CAP, with a strong budget behind it, are essential to ensuring a dynamic, innovative and more profitable agricultural sector, which employs some 40 million people and contributes to overcoming the current economic crisis in Europe.”

Morocco.

Copa-Cogeca has expressed deep disappointment at the vote by the European Parliament backing the draft EU-Morocco trade liberalising deal, warning it will have a drastic effect on the EU fruit and vegetable sector, particularly tomatoes.

Copa-Cogeca Secretary General Pekka Pesonen said that the Commission ought to have first carried out a socio-economic impact assessment before going ahead with the deal. He said that it would jeopardise thousands of jobs in EU rural areas which have already been seriously affected by the economic crisis. He highlighted the fact that imports from Morocco do not have to meet the EU's high production standards which is a major concern for Copa-Cogeca.

This agreement will entail introduction of “significantly increased import quotas compared to the previous agreement for six sensitive products: tomatoes, courgettes, cucumbers, garlic, citrus fruits and strawberries”, the organisations state. This would dramatically increase the positive trade balance already in Morocco's favour and have a disastrous impact on employment in EU rural areas. “I nevertheless welcome the fact that MEPs have made some slight improvements to the agreement, such as changes to the EU system of controls and safeguards for imports from Morocco which have proven to be ineffective in the past. I call on the EU Commission to ensure that these controls and safeguards are properly enforced, to prevent the market from being severely disrupted. The Commission must also work on the entry price system and manage the monthly quota properly”, he said. (LC/transl.rt)

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