Select Committee on European Union Tenth Report


References are to fuller explanations in the Report
Agenda 2000Agenda 2000, published in July 1997, was a blueprint for the future of European Union policy, with enlargement in view. Within this blueprint the European Commission proposed reform of the CAP. Negotiations on Agenda 2000, and thus on CAP reform, were concluded at the Berlin European Council in March 1999 (paragraphs 13-14).
Amber boxWTO designation of domestic financial support to agriculture linked to production support, which must be reduced under the Uruguay Round Agreement on Agriculture (Box 5).
Blue boxWTO designation of domestic acreage and headage support, based on fixed areas, yields and number of head, which limits production (Box 5).
Cross-complianceMaking subsidy payments conditional on compliance with environmental and other non-production requirements (Box 2).
DecouplingThe separation of subsidies to supplement farm incomes from subsidies to production, so that they no longer support or stimulate production (Box 2).
Doha RoundWTO trade liberalisation negotiations initiated at the Fourth WTO Ministerial Conference in Doha in November 2001. Agricultural trade liberalisation talks, which had already begun under the 1993 Uruguay Round Agreement on Agriculture, were subsumed by the Doha Round negotiations.
EU 15The present (2003) 15 Member States of the European Union.
EU 25The EU 15 with the 10 countries due to become Member States in 2004 (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia).
Everything but ArmsSee paragraph 60 and footnote.
Green boxWTO designation of domestic support to agriculture which has no significant effect on levels of commodity consumption, production and trade (Box 5).
Mid­term review (of the CAP) So called because it is mid-way through the 2001-06 budgetary period set by the European Council at Berlin in March 1999, when Agenda 2000 was agreed. It was the only concession won by the reformers at Berlin and committed the Council to reviewing and rectifying the shortcomings of Agenda 2000 (paragraphs 16, 21-25).
ModulationThe term has evolved since it first entered the agricultural policy vocabulary with the proposals for the 1992 CAP reform. Then it meant staged reductions in subsidy entitlement.

In the Agenda 2000 agreement modulation was taken to refer to permission given to Member States to reduce direct production support to farmers and transfer those funds to spending covered by the rural development regulation.

The mid-term review introduced the term "dynamic modulation". It refers to the phasing of modulation (Box 2).

OECDOrganisation for Economic Co-operation and Development.
Pillar 1Production subsidies and direct market support within the CAP.
Pillar 2Support for rural development, environmental protection and structural measures within the CAP.
WTOWorld Trade Organisation.

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