Case: Policy coherence in general

18-12-2009 ACP-EU JPA Question by MEP Rivasi on Subsidies

Although not part of one of the Fair Politics case studies, Michele Rivasi (Greens/EFA) raises a legitimate question concerning milk export subsidies and the incoherence between the alleviation of poverty and the commercial interest that is causing poverty in African Countries.

As many agricultural products, local milk is more expensive than European milk. There is an overproduction of milk in Europe, and because the demand is lower than the supply, milk is sold at extremely low prices on the European market. This leaves the European producers with not enough income for a living, and therefore the EU support the export of excess milk to developing countries with export subsidies. Because the milk is sold at a lower price than it is sold on European markets, it is called dumping. The dumped in milk on the markets of developing countries is at a price that the local milk producers cannot complete with and therefore go bankrupt and unemployed, reinforcing poverty and dependency on EU production.

For raising her concerns to the EU Commission and for her efforts in making EU policies more coherent and fair we acknowledge Michele Rivasi as a Fair Politician.

Monitor fair: Greens/EFA

 

Parliamentary Question
30 November 2009
18th JPA Session
Question by Michele Rivasi (Greens/EFA) to the Commission

Subject: Milk export subsidy
In Brukina Faso a litre of milk reconstituted from imported powder cost 200CFA fancs in 2005 compared with 300 CFA francs of a litre of local milk. Overproduction is leading to a fall in prices in Europe that means that farmers are no longer able to earn a living from their work, and leading to dumping in Africa that is causing unfair competition and driving African farmers out of their local market.

How can the Commission justify the lack of political coherence between the alleviation of poverty and the commercial interest that is causing poverty in the African countries?