Friday, June 10, 2005

France 1, WTO 0

French President Jacques Chirac reaffirmed the 2002 Franco-German deal preserving French farm subsidies, from which France greatly benefits, until at least 2012: "We cannot accept any reduction whatsoever of the direct aids to our farmers."

The Doha Round WTO negotiations, covering reductions in agricultural subsidies among other issues, were to be completed by the beginning of 2005. So far, negotiators are stalled, agreeing this May only on the valuation of farm support payments.

The developing world has long targeted rich country farm subsidies, with only modest success. Earlier this year, President Bush proposed reducing farm subsidies, but abandoned the plan in the face of well-funded, bipartisan opposition. As of January, EU farm subsidies "account[ed] for slightly less than half of the EU's €100bn ($117bn) budget," most of which goes to France, Spain and Portugal.

Don't expect a breakthrough. This week, a European conference on Agriculture and Rural Development reaffirmed the EU's commitment to subsidies:
Cohesion is not an issue only of redistribution of wealth from richer to poorer regions of the Union. It is the commitment of all member states to contribute to reduce inter-regional disparities through exchange of knowledge and technologies, and by improving economic and social infrastructure. For the project of European integration, it is of utmost importance that this principle is carried on even during major budgetary difficulties in the contributing countries.
Chirac himself translated this from Euro-crat-ese: "NFW."

(via EU Referendum and Bloggledygook)

More:

EUROSOC says "France is about as likely to agree to serious reform of the CAP as it is to erect a enormous statue of George W. Bush astride the river Seine."

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