France Whips Up Opposition To Farm Subsidy Cuts Plans

by Ulrika Lomas, for LawAndTax-News.com, Brussels

17 October 2005

The French government has called for an extraordinary meeting of the EU to be held on Tuesday to discuss the offer made last week by Trade Commissioner, Peter Mandelson to cut farm subsidies.

Both the European Union and the United States last week pledged to reduce subsidies for their farming communities in order to restart international talks on trade liberalisation which have stalled as a result of disagreements on this issue.

Writing in the Financial Times and speaking in Zurich on Monday, US Trade Representative Rob Portman revealed that the US is prepared to cut certain types of farm subsidy by 60% over the next five years, eventually bringing subsidies thought to distort world trade down to zero.

Meanwhile, in a statement also delivered on Monday, Mr Mandelson announced that the 25 nation bloc would be prepared to reduce aid to European agriculture by 70%, and to decrease import duties on farm produce by as much as 60%.

The French authorities are reported to have been taken aback by the Trade Commissioner's offer, which they argue was made "without prior consultation with member states".

The French Farm Minister, Dominique Bussereau earlier this month gathered the signatures of 13 member states on a letter urging Mr Mandelson to consult them before making any concessions on agriculture.

It is anticipated that in the light of French calls for a meeting of Europe's foreign, trade and agriculture ministers that the Trade Commissioner will cancel his trip to Washington this week.

Recommended