European Dairy Concerned Over WTO Reforms
UK - Europe's dairy processors are calling for a renegotiation of World Trade Organisation (WTO) proposals to cut subsidies, claiming these would put industry into a "straitjacket".
30 July 2007
2 minute read
The WTO proposals, which go through years of negotiations between governments, are an attempt to reduce subsidies and other barriers to international trade. The subsidies, which have kept European dairy processors and farmers afloat by keeping out lower priced supplies, would require a shakeup of the industry. Peter Dawson, chair of the European Dairy Association's (EDA) WTO taskforce, told DairyReporter.com that in their current form, the proposals would serve only to restrict the future development of dairy production in the bloc.
"The European dairy industry has continually offered concessions to other WTO members, who have offered little in return,"
Dawson's comments follow the publication last week of the WTO's revised draft proposals designed to step up competitiveness within agricultural trade by cutting government subsidies.
While the EDA therefore welcomed the possibility of a balanced outcome from the talks, it said in a statement this week that it remained unsatisfied with the WTO's current suggestions for reform.
Echoing these sentiments, Dawson stressed particular concern over the issue of Europe's export refunds programme.
The EU wanted to limit the funding on export refunds instead of restricting production volumes to grant greater flexibility to producers and processors when they are weaned from a reliance on subsidies.
Dawson believes the EU proposals are preferable to the WTO's current suggestions to restrict the volume of dairy goods produced.
The suggestion, he said, would put the European dairy industry into a "straitjacket", offering little benefit to its members.
"The European dairy industry has continually offered concessions to other WTO members, who have offered little in return," Dawson added.
Source: foodproductiondaily.com
