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The impact of the Common Agricultural Policy on developing countries

22-02-2018

Being the biggest world agri-food importer and exporter, the European Union plays an important role in international agricultural markets. The Common Agricultural Policy (CAP) has considerable influence on international agri-food market. With the CAP 2014-2020, the distortive effect of the policy have been dramatically reduced. However, voluntary coupled support are a matter of concern. Following the 20142020 CAP, Member States may grant voluntary coupled support (VCS) to specific sectors undergoing ...

Being the biggest world agri-food importer and exporter, the European Union plays an important role in international agricultural markets. The Common Agricultural Policy (CAP) has considerable influence on international agri-food market. With the CAP 2014-2020, the distortive effect of the policy have been dramatically reduced. However, voluntary coupled support are a matter of concern. Following the 20142020 CAP, Member States may grant voluntary coupled support (VCS) to specific sectors undergoing difficulties. All Member States expects Germany have opted to apply VCs in some sectors and this generated market distortions both in the internal and in the international marketplace. Another feature of the 2014-2020 CAP is its competitive -oriented approach. Increased competition can boost agricultural development of non -EU countries but can also imply risks for sustainable development and food security. Growing demand supported by the CAP can also have a negative environmental impact. Therefore there are concerns about the coherence of the CAP support with environmental and climate objectives. Although the 2014-2020 CAP made progress towards ensuring policy coherence, more has to be made in the future CAP reform, particularly with reference to international commitment on climate change. Market distorting effects of some CAP instruments shall also be reconsidered.

Údar seachtarach

Maria BLANCO, Professor Agricultural Economics, Universidad Politécnica de Madrid, Spain

International Agreements in Progress: EU-New Zealand free trade agreement - All set for the launch of negotiations

11-10-2017

New Zealand already enjoys a number of bilateral trade cooperation agreements with the EU. These agreements pave the way for negotiations on a free trade agreement (FTA) between the EU and New Zealand. However, both sides are expected to raise several sensitive issues during negotiations, not least because New Zealand is a major and competitive producer and exporter of agricultural goods. The EU is committed to taking European agricultural sensitivities fully into consideration in its negotiating ...

New Zealand already enjoys a number of bilateral trade cooperation agreements with the EU. These agreements pave the way for negotiations on a free trade agreement (FTA) between the EU and New Zealand. However, both sides are expected to raise several sensitive issues during negotiations, not least because New Zealand is a major and competitive producer and exporter of agricultural goods. The EU is committed to taking European agricultural sensitivities fully into consideration in its negotiating strategy, seeking to protect vulnerable sectors through specific provisions. In addition to facilitating trade and investment flows between the parties, the FTA would create a level playing field for the EU with other trading partners that have already concluded FTAs with New Zealand. The FTA would also strengthen the EU's position in Asia-Pacific value chains, and help to advance the trade policy interests of the EU in the region. On 13 September 2017, the European Commission presented draft negotiating directives for an FTA with New Zealand. This draft mandate, in line with the EU Court of Justice's recent opinion on the EU-Singapore FTA, covers only areas falling under the EU's exclusive competence. Therefore, the prospective agreement could be concluded by the EU on its own and could be ratified at EU level only. The Commission aims to finalise negotiations before the end of its mandate in late 2019.

International Agreements in Progress: EU-Australia free trade agreement - Moving towards the launch of talks

11-10-2017

The prospective EU-Australia free trade agreement (FTA) will complement the economic dimension of the current longstanding and evolving relationship with a new element. In addition to opening up new bilateral commercial opportunities, the FTA would also both facilitate the creation of new ties with global production and commercial networks and help to advance the trade policy interests of the EU in the Asia-Pacific region. The economic cooperation already in place includes a number of bilateral agreements ...

The prospective EU-Australia free trade agreement (FTA) will complement the economic dimension of the current longstanding and evolving relationship with a new element. In addition to opening up new bilateral commercial opportunities, the FTA would also both facilitate the creation of new ties with global production and commercial networks and help to advance the trade policy interests of the EU in the Asia-Pacific region. The economic cooperation already in place includes a number of bilateral agreements that provide a good basis for the future negotiations. However, given that Australia is a major agricultural and agri-food exporter globally, it is expected that, in the course of the negotiations, certain sensitive issues may be raised. The EU is committed to taking European agricultural sensitivities fully into consideration in its negotiating strategy, seeking to protect vulnerable sectors through specific provisions. On 13 September 2017, the European Commission presented the draft negotiating directives for the FTA with Australia. This draft mandate, in line with the EU Court of Justice's recent opinion on the EU-Singapore FTA, covers only those areas falling under the EU's exclusive competence. Therefore, the prospective agreement could be concluded by the EU on its own and could be ratified at EU level only. The Commission aims to finalise the negotiations before the end of its mandate in late 2019.

Research for AGRI Committee - The Post-Quotas EU Sugar Sector

03-06-2016

The liberalisation of the sugar market in the EU will bring about changes in the sugar sector. Elimination of production quotas and the minimum price for the purchase of sugar beet will affect competition and sugar production. Foreign trade will play a key role in the market balance. The EU market will become strongly linked to the world market. The sugar sector is of strategic importance and CAP market policy should include instruments that allow the maintenance of sugar production.

The liberalisation of the sugar market in the EU will bring about changes in the sugar sector. Elimination of production quotas and the minimum price for the purchase of sugar beet will affect competition and sugar production. Foreign trade will play a key role in the market balance. The EU market will become strongly linked to the world market. The sugar sector is of strategic importance and CAP market policy should include instruments that allow the maintenance of sugar production.

Údar seachtarach

Piotr Szajner, Barbara Wieliczko, Marek Wigier, Mariusz Hamulczuk and Wioletta Wrzaszcz (Institute of Agricultural and Food Economics - National Research Institute, Poland)

Organic farming legislation - Revision of regulation on organic production and labelling of organic products

20-10-2015

The development of organic production is a political objective of the EU. Although its organic market has constantly expanded, the EU's organic land area still represents only 6% of the total agricultural area and the difference between EU demand and production is covered by growing imports. To overcome the regulatory obstacles to the development of the sector and increase consumer confidence in the EU organic logo, in March 2014 the Commission adopted a proposal for a regulation on organic production ...

The development of organic production is a political objective of the EU. Although its organic market has constantly expanded, the EU's organic land area still represents only 6% of the total agricultural area and the difference between EU demand and production is covered by growing imports. To overcome the regulatory obstacles to the development of the sector and increase consumer confidence in the EU organic logo, in March 2014 the Commission adopted a proposal for a regulation on organic production and labelling of organic products, repealing Regulation No 834/2007. EU Agriculture Ministers agreed in June 2015 on a Council general approach to the proposal. On 13 October 2015, the Parliament's Agriculture Committee voted on its draft report on the proposal and the mandate to begin negotiations with the Council. This briefing updates an earlier edition, of 10 September 2015: PE568.317. Please click here for the full publication in PDF format

Organic production and the European Union

16-02-2015

Organic agriculture views itself as respecting natural cycles by refraining from the use of genetically modified organisms, by limiting the use of synthetic chemical products and by ensuring animal welfare. Organic production, regulated and supported at EU level, is controlled, certified and labelled. The specifications list also adapts to different kinds of production. Initially a niche market, organic agriculture now represents a European market worth more than EUR 22 billion a year, with demand ...

Organic agriculture views itself as respecting natural cycles by refraining from the use of genetically modified organisms, by limiting the use of synthetic chemical products and by ensuring animal welfare. Organic production, regulated and supported at EU level, is controlled, certified and labelled. The specifications list also adapts to different kinds of production. Initially a niche market, organic agriculture now represents a European market worth more than EUR 22 billion a year, with demand continuing to increase. The organic sector, seeking a vision for the future, must respond to certain challenges, particularly in its coexistence with conventional agriculture, but also in terms of producer and consumer confidence in the system and its values, in a context of growing international exchanges. In March 2014, the European Commission proposed to revise the entire legislative framework of the organic sector, in particular with the aim of reducing the current derogation practices, reviewing the control system and the import regime, simplifying the legislation and cutting down on the red tape. Some initial reactions to these proposals seem rather critical. The first reading legislative appraisal has started in the European Parliament, but the announcement of the new "Juncker Commission" of its intention to withdraw this proposal by mid-2015 should an agreement not be reached by then could change the context.

The Impact of Biofuels on Transport and the Environment, and their Connection with Agricultural Development in Europe

16-02-2015

The use of biofuels in transport is being promoted as a means of tackling climate change, diversifying energy sources and securing energy supply. Biofuels production also provides new options for using agricultural crops. However, it also gives rise to environmental, social and economic concerns which are the subject of intense debate worldwide. This study provides a detailed overview of biofuels production and consumption and of related policies worldwide. It also contains comprehensive analysis ...

The use of biofuels in transport is being promoted as a means of tackling climate change, diversifying energy sources and securing energy supply. Biofuels production also provides new options for using agricultural crops. However, it also gives rise to environmental, social and economic concerns which are the subject of intense debate worldwide. This study provides a detailed overview of biofuels production and consumption and of related policies worldwide. It also contains comprehensive analysis and discussion of key aspects affecting the overall sustainability of biofuels. These include, in particular, their impact on agricultural markets, emissions from indirect land-use change, and greenhouse gas emissions.

Údar seachtarach

Luisa Marelli, Monica Padella, Robert Edwards, Alberto Moro, Marina Kousoulidou, Jacopo Giuntoli, David Baxter, Veljko Vorkapic, Alessandro Agostini, Adrian O’Connell, Laura Lonza and Lilian Garcia-Lledo (European Commission, Joint Research Centre, Institute for Energy and Transport, Sustainable Transport Unit)

Comparative Analysis of Risk Management Tools Supported by the 2014 US Farm Bill and the CAP 2014-2020

15-12-2014

The 2014 Farm Bill includes risk management tools as an integral component of national agricultural policy whereas the CAP 2014-2020 seems to include them as an afterthought. While EU principles are sound, policies remain in limbo. They suffer from a double dichotomy: two CAP pillars and two administrative levels for implementation. Ten recommendations are proposed for transforming the current state of limbo for EU agricultural risk management policy into a coherent CAP linked to world markets. ...

The 2014 Farm Bill includes risk management tools as an integral component of national agricultural policy whereas the CAP 2014-2020 seems to include them as an afterthought. While EU principles are sound, policies remain in limbo. They suffer from a double dichotomy: two CAP pillars and two administrative levels for implementation. Ten recommendations are proposed for transforming the current state of limbo for EU agricultural risk management policy into a coherent CAP linked to world markets. They cover (1) EU coordination between public safety nets and private risk management tools, (2) flexible funding with improved reserve funds and precautionary savings, and (3) field tests to take full advantage of the creativity of private-public partnerships and to create an experience curve.

Údar seachtarach

Jean Cordier (UMR SMART-LERECO, Agrocampus Ouest INRA)

Organic Production and Labelling of Organic Products: Initial Appraisal of the Commission's Impact Assessment

15-07-2014

This briefing seeks to provide an initial analysis of the strengths and weaknesses of the European Commission's Impact Assessment (IA) accompanying its proposal for a Regulation of the European Parliament and the Council on organic production and labelling of organic products (COM (2014) 180), which was adopted on 24 March 2014. It does not attempt to deal with the substance of the proposal and is drafted for informational and background purposes to assist the AGRI committee and its Members in their ...

This briefing seeks to provide an initial analysis of the strengths and weaknesses of the European Commission's Impact Assessment (IA) accompanying its proposal for a Regulation of the European Parliament and the Council on organic production and labelling of organic products (COM (2014) 180), which was adopted on 24 March 2014. It does not attempt to deal with the substance of the proposal and is drafted for informational and background purposes to assist the AGRI committee and its Members in their work.

Research on: Regulating Agricultural Derivatives Markets

15-11-2013

After years of financial deregulation, the agricultural commodity price shocks of 2007/2008 and 2010/2011 acted as a catalyst for governments to strengthen the regulation of derivatives markets. It is increasingly recognised, at national and international levels, that financial players influence the volatility of commodity prices on exchanges and in spot markets. Reforms of the legal framework of futures markets are being carried out to: - Provide additional transparency requirements in agriculture ...

After years of financial deregulation, the agricultural commodity price shocks of 2007/2008 and 2010/2011 acted as a catalyst for governments to strengthen the regulation of derivatives markets. It is increasingly recognised, at national and international levels, that financial players influence the volatility of commodity prices on exchanges and in spot markets. Reforms of the legal framework of futures markets are being carried out to: - Provide additional transparency requirements in agriculture derivatives market - Guarantee broad market information on the physical (spot) markets - Impose position limits on several agricultural commodities - Reinforce regulators' powers

Imeachtaí atá ar na bacáin

17-02-2020
The Dilemma of Disinformation: How should democracies respond?
Imeacht eile -
EPRS

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