CAP shelter from WTO reform

UK FARMERS should be sheltered from most trade reforms recently pencilled in by World Trade Organisation delegates in Geneva.

Recent CAP reform is likely to satisfy most requirements drawn up in the meeting, the latest in the ongoing Doha Development Round set up in 2001 to liberalise global trade.

Further measures in the Brussels pipeline should buy time for targets yet to be met.

The 147 participating countries finally agreed a framework for substantial cuts in production-linked farm support, the ending of trade-distorting export subsidies and increased market access.

At the conclusion of the talks, EU agriculture commissioner Franz Fischler said: “Today we got a deal which will boost the world‘s economy, farm trade and opportunities for poorer countries.

“This agreement ensures that other rich countries will follow the EU on its reform path. The EU‘s reformed farm policy will not be called into question.”

NFU chief economist Derrick Wilkinson largely agreed. “In general, CAP reform should mean our farmers will not have to face significant new changes.”

The WTO was not going to alter the rules overnight, he said. It could be at least 2015 before the full force of WTO change is felt.

But much of that change may go largely unnoticed here as the ongoing CAP reform would leave farmers better positioned to meet the challenges posed by the WTO agreements, he said.