When it turned out few days ago that I would replace Mr O’Sullivan today, Pascale was so kind and informed me about the issues that you would like to hear about, so I tried to structure my intervention accordingly.
In this available 15-20 minutes I won’t be able to explore these issues in details, I will just give you some food for thoughts and will behappy to answer your questions later on (also through the organisers)
So my menu for today is
A bit of global context, EU as a global player
will help understand why we pursue such an ambitious trade agenda.
Then the evergreen DDA where I will address some of the issues you raised, like export refunds and direct payments.
You asked for info on the FTAs with Korea and Mercosur
Faircompetition, the problem of "level playing field" is also high on the agenda these days
You also asked for info on the protection of GIs in third countries.
Let's look at the place the EU occupies in global trade, in global economy.
From left to right you can see the share of the 4 biggest players, EU, US, Japan and China in exports and import of goods, services; in FDIinflows and outflows and their stocks.
The EU has the biggest chunk in all these categories. In some categories these 4 players cover more than 50% of the total value.
It is interesting to note that our economy is becoming a transformation economy. It means that around 2/3 of our imports are actually inputs in the production process of higher value added products.
Being the largest tradepower in the world it’s obvious that for the EU economy it is necessary to have strong, rules based multilateral trade system in place.
A system where everyone plays according to the same rules.
Where the exports of our companies are not hindered by tariff or regulatory barriers and we have reliable access to quality raw materials at competitive prices.
We can be a major winner of multilateraltrade liberalization and would suffer the most from a slippage into protectionism.
Very briefly let's see how agricultural trade looks in this global context.
World agricultural trade accounts for about 5% of total trade in goods.
The same ratio is valid for the EU. 95% of what we trade is non agricultural product, the remaining 5% comes from agriculture (and usually this isthe problematic 5….US)
The EU is also on the top of the global trade of agricultural products. As you can clearly see on these graphs, the EU is both a leading exporter and a leading importer, absorbing more than 20% of the world imports.
There are two things I would like to highlight on this slide, the first is the impressive increase of Brazil's export that can be observedsince a decade.
The other is the spectacular growth of import in China.
This global context leads me to the WTO Doha Development Agenda negotiations (I'll refer to it as DDA) where agriculture is one of the hottest issues.
why is this slow progress?
A colleague of mine believes that this is partly thanks to the fact that the WTO headquarter is located in such a niceenvironment that people simply like to go there to negotiate so they don't want it to be over. (Geneva lake, good canteen, etc).
We could have a long interesting discussion about the history of DDA, why did negotiations break down back in July 2008 when we almost had a deal.
But I would rather focus on the July 2008 package itself since, as it has been clearly and firmly expressedseveral times, this is the maximum what EU agriculture could contribute to DDA and nothing more. So it is a sort of take it or leave it offer as far as EU agriculture is concerned.
3 chapters or pillars in agriculture
In domestic support the 2003 CAP reform with the decoupling of subsidies from production put us in a relatively comfortable position. Commitments like 80% cut in OTDS did not have...