Annex C
WTO MILLENNIUM ROUND—COUNCIL
CONCLUSIONS
The Agriculture Council stresses that safeguarding
the future of the European model of agriculture, as an economic
sector and as a basis for sustainable development, is of fundamental
importance because of the multifunctional nature of Europe's agriculture
and the part agriculture plays in the economy, the environment
and landscape as well as for society. Thus the contribution of
agriculture remains vital to the European economy and society.
With this view and within the preparation of
the European Union's position in view of the upcoming Seattle
Ministerial Conference of the WTO the Agriculture Council has
held an intensive discussion on the agricultural aspects of these
negotiations. At the end of its deliberations, the Council has
drawn the following conclusions:
I. GENERAL ASPECTS
1. The Council recognises the importance
of the further liberalisation in and expansion of trade for agriculatural
prooducts as a contribution to sustained and continued economic
growth, and as foreseen in Article 20 of the Agreement on Agriculture.
2. The Council also confirms that it is
firmly resolved to continue developing the existing European model
of agriculture based on its multifunctional character, as endorsed
by the European Council, and to act to assert its identity both
inside and outside the European Union.
Europen agriculture as an economic sector must
be versatile, sustainable, competitive and spread throughout Europe,
including the regions with specific problems. It must be capable
of maintaining the countryside, conserving nature and making a
key contribution to the vitality of rural life. It must also be
able to respond to consumer concerns and demands regarding food
quality and safety, environmental protection and the safeguarding
of animal welfare.
3. The Council recalls the scale of the
efforts made to curb the budget and exercise rigour in implementing
the Common Agricultural Policy. It underlines that the efforts
made notably in terms of reducing support prices, represent an
essential contribution by the European Union in stabilising the
world's agricultural markets.
Therefore, as was decided by the European Council
in Berlin, the decisions adopted regarding the reform of the CAP
within the framework of Agenda 2000 constitute essential elements
of the European Union's position for the future multilateral trade
negotiations at the WTO.
Accordingly, the Union's policy in the forthcoming
negotiations shall be founded on the full Agenda 2000 package
decided by the European Council.
4. The Council recalls that negotiations
on agriculture will be based on the principles enshrined in Article
20 of the Agreement on Agriculture. This implies that the long-term
objective of substantial progressive reductions in support and
protection resulting in fundamental reforms is an ongoing process.
Moreover, this process is conditioned by other concerns which
must also be taken into account, notably: the experience and effects
of implementing reduction commitments agreed in 1994, special
and differential treatment of developing countries, the objective
to establish a fair and market oriented agricultural trading system,
and non-trade concerns.
5. The Council sees a need to take an offensive
line within the forthcoming WTO negotiations. This is necessary
in order to achieve inter alia the following aims: taking
full advantage of the expansion in world trade while maintaining
and developing the European model of agriculture with its multifunctional
characteristics and with high quality and safety standards; placing
market liberalisation in a setting which brings international
recognition of the constraints imposed on European farmers and
agricultural products and does not call into question the principle
of the Community preference.
II. NEGOTIATING
MODALITIES
6. The Council fully subscribes to the idea
of a new comprehensive WTO Round. Indeed, only a comprehensive
approach can produce substantive and balanced results which will
be for the benefit of all WTO members.
The Council also welcomes the approach already
stated by the European Union which is based on the principle of
a "single undertaking", ie nothing is decided until
agreement has been reached on all issues; all participants must
accept and implement all agreements.
III. EUROPEAN
UNION'S
OBJECTIVES IN
THE NEGOTIATIONS
Bearing in mind the above considerations, the
main objectives of the European Union in the agricultural sectors
should be the following:
7. With regard to the improvement in access,
the European Union, as a major food exporter, must act with a
view to sharing in the expansion of world trade, which will be
offered as a result of the new Round. The European Union therefore,
is prepared to negotiate for lowering trade barriers in agriculture,
bearing in mind that this process is more advanced in some agricultural
sectors than in others. However, it must also obtain, as a counterpart,
improvements in market opportunities for its exporters. In connection
with the improved market access, protection for Community products,
whose reputation for quality is linked to geographical origin
or indication, should also be obtained.
8. The "Peace Clause" and the
"Special Safeguard Clause" have proved to be very useful
instruments in the implementation of the Uruguay Round. Similar
instruments will be needed in the future. This is necessary in
order to provide legal security for the outcome of the negotiation
and to enable abnormally low price offers or import surges to
be dealt with without frequent recourse to more disruptive action
under the general safeguard clause.
9. It is essential, for the affirmation
of the CAP, to maintain the balance of the present elements of
the Agreement on Agriculture, in particular those which concern
modalities relating to domestic support. This remains an essential
element in providing assistance to WTO members to move away from
price support towards more transparent and non-distorting policies.
Furthermore, direct aids can contribute to some of the missions
of multifunctional agriculture particularly in the field of rural
development.
10. The Council is prepared to continue
to negotiate the process of reductions in export subsidies provided
that all such support is treated on equal basis. Modalities of
export support commitments should be reviewed. For the Council,
it is imperative to introduce discipline on the use of export
credits. Moreover, appropriate solutions must be found to other
less transparent forms of export support such as state trading
and the provisions of food aid.
11. The Council considers that the European
Union should be prepared to negotiate reductions in support provided
that, in particular, the concept of "blue and green"
boxes will continue.
12. The Council considers that an appropriate
balance has to be struck in the outcome of the negotiations between
trade and non-trade issues, most of which result from the multifunctional
role of agriculture or are intended to answer the legitimate concerns
of the rural world and of cunsumers. This applies in particular
to the multifunctional role of agriculture including environmental
protection, safety and quality of food and animal welfare.
The Council considers it essential to ensure
that progress on trade issues does not damage the ability of those
employed in agriculture to supply public goods, in particular
as regards the environment and the sustained vitality of rural
areas. For the Council, direct aid measures with no or minimal
trade impact must have an important role to play in this context.
13. With regard to food safety and quality,
the European Union should seek solutions which assure consumers
that the WTO will not be used to force onto the market products
about whose safety there are legitimate concerns and which allow
the European Union to establish the appropriate level of protection.
Without prejudice to the provisions of the disputes settlement
procedure, it would be useful to obtain clearer general recognition
of the precautionary principle.
Additional concerns of consumers can also in
part be met by providing more information through inter alia the
development of labelling schemes.
Without prejudging at this stage the nature
of possible solutions, the Council, stressing the need to ensure
equal conditions of competition between European Union and third
country producers, considers that international acknowledgement
of animal welfare rules must be one of the key points of the negotiating
brief for the WTO Millennium Round.
IV. OTHER ASPECTS
OF THE
NEGOTIATIONS
14. Recognising the need for a special and
differential treatment for the developing countries, the Council
shares the view that the new Round should provide benefits to
developing countries and assist the integration of those countries,
particularly the least developed countries, into the international
trade system. To this effect, the European Union should be prepared,
within the context of a joint effort amongst developed countries,
to go beyond the regime already applied to them within the GSP
and the Lomé Agreement. Furthermore, the Council recalls
that the European Community has proposed that WTO Ministers meeting
at Seattle enter into the commitment to ensure duty-free market
access no later than the end of the new round of negotiations
for essentially all products exported by the least-developed countries.
15. The Council recalls that the enlargement
of the EU will have a profound impact on European agriculture
and should contribute to the stabilisation and development of
world markets through the application of Community policies. Without
prejudice to Article XXIV (6) of the GATT, this should be given
its due weight in the negotiations.
16. The Agriculture Council intends to play
an active role in the forthcoming negotiations and therefore expects
to be regularly informed on their evolution in order that it can
provide an appropriate input when necessary.
27 September 1999
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