Answer given by Mr Hogan on behalf of the European Commission

15.2.2019

The Commission has decided on 25 January 2019 to launch consultations with the United States (US) before the World Trade Organisation (WTO) in this matter.

The EU agriculture support schemes, which were countervailed by the United States, are not trade distorting and not product specific, hence they comply with WTO rules. Given the inherent unpredictability of litigation, all pros and cons have been carefully analysed in view of a dispute of the US measures before the WTO. The analysis carried out by the Commission's legal experts included elements such as the economic importance of the case, systemic concerns and possible chances of success.

As for the common agricultural policy (CAP), the European Parliament and the Council are examining the proposal for its modernisation and simplification submitted by the Commission in June 2018, which was based on an extensive analysis of all the mechanisms of the current CAP.