US urges EU to move ahead with CAP reforms

13/05/2003

The US trade representative, Robert Zoellick, has claimed that the European Union (EU) will jeopardise the next World Trade Organisation (WTO) ministerial meeting on liberalisation if it does not reform its current system of farming subsidies.

The WTO meeting is scheduled to take place in Cancun, Mexico, September 10-14, 2003. However, Zoellick wants to see the EU revise its Common Agricultural Policy (CAP) before the conference.

Zoellick said that the EU farm commissioner Franz Fischler has tried to get some movement going on the CAP reforms, but added that it was really up to the EU member states themselves.

He has urged Germany, the biggest contributor to CAP to support the EU commission plans, which also include market reform proposals. Zoellick said the proposals would aid the developing world and transatlantic relations by showing that Washington and Brussels were cooperating in a multilateral system.

The 145 WTO members have differing views on the pace and extent of agricultural reforms, in particular with regard to subsidies and tariffs. The US and the 18 nation Cairns Group are in favour of radical liberalisation of global farming markets and the EU and Japan advocate a slow, cautious approach, taking into account environmental protection and food security. All developing countries are concerned about protecting farmers.