Government response
Introduction
The Government welcomes the report of the Environment,
Food and Rural Affairs Committee into Agriculture and EU enlargement.
The report provides a useful assessment of the state of the agriculture
sectors of the ten New Member States (NMS), the effect of transitional
arrangements and reform of the sector in preparation for accession
as well as the impact of enlargement on the agricultural markets
of Europe. This response is provided on behalf of the Government,
but incorporates the response of the Food Standards Agency.
Impact of accession
on agriculture in the new Member states
Recommendation 1
While the New Member States struggle
with their current weaknesses, including structural fragmentation
and a lack of capital investment, we consider that they are unlikely
to be in a position to undermine agricultural markets in the UK.
The prospect of accession as well as the
process of aligning national legislation with the acquis communautaire
and enforcing EU veterinary, phytosanitary, animal welfare and
food safety standards prior to accession has caused the New Member
States to undergo a period of development and restructuring of
their agricultural sectors. The strength of the sectors, the extent
to which consolidation has taken place and the availability of
capital investment vary across the New Member States, but all
these areas have improved during the period leading up to accession.
The Government agrees with the Select
Committee's conclusion that it seems unlikely that this strengthening
poses an immediate challenge to agricultural markets in the UK.
Recent statistics compiled by Eurostat on arable crops show that,
while the New Member States account for 25.7% of total crop area
and 35.8% of root crop area, their yields lag behind the rest
of the EU. Cereal yield figures in the new member states are at
least one third lower than in the EU15, and more than 40% lower
for common wheat and rye. Features of the agriculture sector in
the New Member States such as this, and the fact that the UK market
is more focused on value-added products than New Member States
mean that it is unlikely we will see a substantial increase in
net imports from the Accession Ten in the short to medium term,
a view shared by the National Farmers' Union (NFU) in the memorandum
they submitted.
Recommendation 2
The ability of the NMS to implement
the transitional agri-food measures is of critical importance,
as the discovery of sub-standard food in circulation on the single
market would bring the whole system into disrepute. Lax safety
standards in the NMS could undermine consumer confidence in all
food products across the whole of the EU. We recommend that the
UK Government use all its influence to ensure food safety standards
continue to be upheld.
The Government agrees that implementing
rules and requirements for agri-food establishments and the transitional
agri-food measures is of critical importance in ensuring the safety
of consumers in the UK and throughout the single market.
The implementation of transitional agreement
agri-food measures is now well under way. When the EU agreed to
transitional measures all the agri-food establishments involved
were provided with detailed up-grading programmes. Produce from
these establishments is specially marked and cannot enter the
single market. The Commission monitors progress and compliance
with EU rules in both new and old member states.
The ten New Member States have implemented
the existing body of EU law in the acquis communautaire,
including in the area of food controls. They have established
new Border Inspection Posts and are operating the controls to
prevent non-EU-compliant products from finding their way on to
the internal market.
At the Border Inspection Posts on the
new eastern border, which stretches from Estonia to Slovenia,
standards are identical to those enforced on products entering
the UK from a third country. The European Commission is responsible
for monitoring compliance and ensuring the high standards of controls
carried out in all twenty-five Member States. No irregularities
have been reported in the ten New Member States to date.
In addition to safeguard provisions set
out in EU rules, Article 58 of the Accession Treaty provides an
additional safeguard clause, which the EU may invoke if there
is a risk to the functioning of the internal market.
Recommendation 3
We believe that the UK Government should
press the Commission to address the adequacy of the accession
countries' internal scrutiny systems. It is essential that the
GM status of exports from the NMS can be assured.
Decisions to approve genetically modified
organisms are only taken after an EU-wide evaluation process.
Under EU legislation each proposed release of a GM product is
subject to a detailed risk assessment which involves careful scrutiny
by scientists. The UK will continue to insist, both through contact
with Commission officials and bilaterally with officials from
Member States, that all Member States properly scrutinise GM products
and that scientists used by Member States for this purpose are
highly trained and independent.
The Government agrees that insisting on
a high standards for all Member States' internal scrutiny systems
is essential as any concerns with GM products need to be picked
up by other Member States during the application process. New
applications on GM food and feed are assessed centrally by the
European Food Safety Authority. An evaluation is made of all the
risk factors that may arise, including possible toxic or allergenic
effects and the likely consequences of any gene transfer to other
organisms. This takes account of relevant evidence from tests
and trials as well as existing scientific knowledge. The Government
takes a precautionary approach and will only agree to the commercial
cultivation of a GM crop if it is satisfied that it is safe.
Recommendation 4
Further targeted rural development programmes
are important in helping the NMS to overcome their weaknesses,
particularly with regard to the modernisation and restructuring
of their agriculture sectors. Rural development policies also
offer the best opportunity to diversify and generate non-farm
income.
The Government agrees with the recommendation,
and would point out that rural development programmes are important
not just in addressing the modernisation of the agriculture sector,
but are also central to the economic future of rural areas overall.
All rural development programmes need to be set in the context
of, and contribute to, wider rural economic objectives.
The UK is pressing for 50% of future rural development
programmes funding to be used for meeting shared EU environmental
objectives.
Recommendation 5
The evidence we received on the agricultural
implications for the NMS was of course received prior to enlargement.
A few months on, it is still too early to determine what the full
impact of accession will be. It does seem, however, that fears
of markets being immediately flooded by products from the NMS
were not grounded in fact. We consider that the agricultural potential
of the NMS will not be realised until its farming sector is restructured;
such restructuring will take some years to complete. The environmental
concerns, which came from official as well as other sources, deserve
serious attention. We also believe the UK Government should explore
ways in which it can use its existing knowledge and experience
to assist the NMS in achieving their environmental targets.
The Government agrees with the Committee's assessment
that it is too early to evaluate the full impact of accession
and that fears of the market being flooded by products from the
New Member States were exaggerated.
Defra continues to offer practical help to the New
Member States in their implementation of EU environment and agriculture
rules. We will continue to look for opportunities to co-operate
through EU measures, including twinning and Technical Assistance
and Information Exchange (TAIEX) programmes, which involve long
and short term expert exchange, as well as through bilateral contacts
and by providing advice to our counterparts in the agriculture
and environment administrations in these countries. Currently
we are involved in a project helping Poland to develop their Rural
Development Plan. We are also hoping to meet two delegates from
the EU Integration Department of the Polish Environment Ministry
early in January.
Defra's Environment for Europe Fund promotes environmental
protection and sustainable development in Central and Eastern
Europe, as well as in the Caucasus and Central Asia and supports
activities of environmental organisations in these countries.
The Small Environment Projects Scheme in the EU and candidate
countries has provided small scale assistance to address immediate
environmental problems.
Impact of enlargement on agriculture in the UK
Recommendation
6
The Government should do more to identify investment
opportunities and encourage exports of UK farm produce to the
NMS. Specific funds should be allocated to target these new market
opportunities, with improved trading relationships facilitated
by UK embassies.
Defra gives Food From Britain more than £5 million
a year to promote UK exports. Food From Britain works with UK
Trade & Investment and local partners including British Embassies
to help UK companies enter or develop new markets in countries
like Poland, Hungary and the Czech Republic.
Recommendation 7
Overall we consider that enlargement
represents more of a challenge than a threat to the UK farmer.
We agree with this conclusion. Enlargement of the
single market presents opportunities for both the UK and the New
Member States to win new markets. Like the NFU the Government
views enlargement as presenting more opportunities than threats,
particularly for the value-added sector. The Government hopes
that UK agri-businesses will make the most of the opportunities
that enlargement offers.
Other issues
Recommendation 8
We regard it as important that the European Parliament's
increased responsibility in agricultural policy-making should
not be dominated by what the Minister so strikingly described
to us as one of the least progressive elements of the EU, the
Agriculture Committee. We share his concerns and urge the UK Government
to continue to push for further agricultural reform.
The Government will work constructively with the
European Parliament's Agriculture Committee before, during and
after the UK's presidency of the EU. The Government is committed
to building on the substantial reform of EU agriculture policy
that has already been achieved by pressing for further progress
towards a sustainable, fair and cost effective Common Agricultural
Policy.
Recommendation 9
It is inevitable that finite budgetary resource
will be spread increasingly thinly across an enlarged Europe.
As EU membership grows to 25 and beyond, the need for structural
and cohesive funds will compete more fiercely against demands
for agricultural support. The longer-term effect can be only in
the direction of reduced agricultural support for farmers in longer-standing
EU Member States such as the UK.
The Government remains committed to bringing about
a sustainable Common Agricultural Policy which would support farmers
across both old and new Member States. Although funds are limited,
the money currently being spent in the ten New Member States on
agricultural support and structural and cohesion funds is included
in the EU Budget ceilings which were set at Berlin in 1999.
Conclusion
The Government will continue to work to achieve a
successful enlargement of the EU. Despite the striking differences
in agriculture in the New Member States, as detailed in the report,
the accession in May does not appear to have had a detrimental
impact on agriculture in the UK or in the EU. The Government will
continue to work for a more sustainable CAP and targeted rural
development programmes. The EU regards Bulgarian and Romanian
accession as an integral part of the enlargement process and has
agreed terms and conditions for agriculture along the same lines
as for the ten New Member States. Defra will continue to work
with both new and old Member States in an EU of 25 or in an EU
of 27 with a view to promote sustainable agriculture for the benefit
of all citizens of an enlarged community.
Department for Environment, Food and Rural Affairs
December 2004
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