Brussels, 18/12/2015 (Agence Europe) - The think tank Momagri has called on European Commission President Jean-Claude Juncker to comment on the United States Department of Agriculture (USDA) report on the Transatlantic Trade and Investment Partnership (TTIP) that found that US agriculture would be the big winner if the trade deal goes ahead.
In a press release published on Thursday 17 December, Momagri asks how the Commission can still claim that TTIP will safeguard the interests of European agriculture.
The US study examines two scenarios that range from the removal of customs duties to the elimination of non-tariff measures. The conclusion reached confirms the fears of the European agricultural community: the outcome of such a partnership would be very positive for the United States, and substantially less so - and maybe even negative - for the European Union, Momagri says. Under the first scenario - an agreement limited to the removal of customs duties - US exports to the European Union would rise by nearly $5.5 billion, while European gains would only amount to $0.8 billion. If the elimination of non-tariff measures is added, the second scenario even increases the US benefits, which, according to various estimates, would amount to $9.6 billion, against $2 billion for the European Union. “In other words, when the Europeans gain one dollar, the Americans get five dollars.”
Furthermore, USDA notes that European agricultural prices would experience downward pressure, while American prices would be supported upward. The Farm Bill, Momagri points out, is an agricultural policy that is coupled to production and provides its farmers with a minimum income, which is definitely no longer true of the common agricultural policy (CAP). The European Commission must be able to refute the findings of the US Department of Agriculture study, or its duty is to bring the negotiations on agriculture to a halt, argues Momagri. (Original version in French by Lionel Changeur)