Case: Policy coherence in general

10-11-2010 European Parliament opens debate on CAP reform: round 1

The Common Agricultural Policy (CAP), one of the most important EU policies as it concerns about 40% of the EUs budget is due to be reformed in 2013. If there is one topic that is bound to generate emotional discussions, it is the CAP. Everybody remembers the farmers who spilt their milk in the parks of Brussels in 2009, demanding support for the dropped market prices.

Currently, the European Commission is preparing a Communication on the CAP reform, which is expected on November the 18th. However the European Parliament (EP) already decided to start the debate and present their own views. The first two draft reports of the Committee on Agriculture and Rural Development have been published. However both the draft report on recognition of agriculture as a strategic sector in the context of food security and the draft report on EU agriculture and international trade completely fail to mention Policy Coherence for Development (PCD). There are committees within the EP which do recognize the importance of agriculture for development. Both the Development Committee and the International Trade Committee wrote opinions on EU agriculture and international trade. 

MEP Patricia Toia (S&D) wrote the opinion on behalf of the Development Committee in the EP, pointing out that the EU has the legal obligation to reduce poverty under article 208 of the Treaty of the Functioning of the European Union (TFEU). Moreover Toia explicitly mentions that PCD is the best instrument to achieve Millennium Development Goals 1 (eradicate hunger and poverty) and 8 (global partnership for development). She also mentions that the export subsidies for milk, which were reintroduced in 2009 should be eliminated, because this could lead to dumping excess milk in developing countries, distorting competition with local producers which leads to a reduced local productivity. Next to export subsidies Toia is strongly in favour of reducing all tariffs and non-tarfiff barriers for imports from developing countries, which would enhance the export opportunities for farmers in developing countries.  

MEP Godelieve Quisthoudt-Rowohl (EPP) expressed the view of the International Trade Committee. The focus is mostly on trade issues, like the agreement on trade in Bananas, which ends 20 years of WTO disputes. However in the opinion she also addresses the importance of a coherent approach to social and environmental norms in the different bilateral agreements. Furthermore Quisthoudt-Rowohl points out that agriculture is essential for economic development and poverty reduction. Also trade policy helps to fight food security challenges, and measurements on export restrictions must be taken to prevent the aggravation of any future food crisis.

Fair Politics is pleased to see that both of these MEPs are making sure the Parliament does recognise the influence of the CAP on developing countries. Although the argument is often used that the EU has already significantly reduced its trade distorting policies, more can still be done to ensure poverty alleviation world wide. Take for instance the cotton subsidies which are still only decoupled for 65%, due to a constitutional obligation made to Greece and Spain. Policy makers in the EU must realise that their decisions are directly influencing the livelihood of farmers in developing countries. Fair Politics will continue to follow closely the debate of the CAP reform.

MEPs Patricia Toia (S&D) and Godelieve Quisthoudt-Rowohl (EPP) are recognized as Fair Politicians for expressing the need for PCD in the CAP. For writing these opinions, both MEPs will earn two points in our monitoring system.

Monitor fair: S&D(2), EPP(2)