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33 rd IPC Plenary Meeting and S eminar May 1 6-17, 2004. Agricultural Trade Negotiations: Politics and Prospects Jerzy Plewa , Poland. Key questions. What influence decision making process concerning negotiating positions? Who are the main players in this process?
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33rd IPC Plenary Meeting and Seminar May 16-17, 2004 Agricultural Trade Negotiations: Politics and Prospects Jerzy Plewa, Poland
Key questions • What influence decision making process concerning negotiating positions? • Who are the main players in this process? • What is a weight of economics and politics? • Are there any other concerns (social, environmental, cultural)? • What leads to mutual agreements and is a “win-win” result possible in multilateral trade negotiations?
Simultaneous processes • European enlargement • Reform of the Common Agricultural Policy • WTO negotiations
General information on Polish agriculture • The number of agricultural holdings – 1,8 millin • The total area of utilized land – 18.3 million ha • An average farm size – 8.44 ha • The share of agriculture in GDP – 2.7% • The inhabitants of rural areas – 8 504 900 people (38% of total population)
Economics of Polish agriculture • PSE (2002) – 14% • Total support for agriculture and rural development in 2002 - 1 billion EURO or 2.7% of total Poland’s budgetary expenditure • „Price squeeze” year 2002 – 65.5 year 1990 – 100
The adjustment of Polish agriculture to the new conditions • Response to the consumers demands (marketing, public relations, image) • Response to the increased competition (trade balance, price fluctuation) • Response to the legal obligations (certification, adoption of standards)
The number of establishments complying with EU requirements and which received transitional periods
Poland is open for the CAP reforms • Simplification CAP and decoupling is supported by Poland • More focus on rural development – increasing role of II pillar • Environment and landscape protection- in our interest • Preserving biodiversity and multifunctional agriculture - our aspiration • The same treatment of all farmers form the EU 25
Concerns of New Member States • extension of the phasing-in mechanism on new direct payments introduced in some sectors, including milk, energy crops • freezing of the milk quotas until 2014 (this is especially important in Poland)
CAP reform – General evaluation • changes in the CAP support a multi-functional European agriculture • support dependent on compliance with agro-environment standards • increasing funds for rural development • limiting payments for large, intensive farms • positive effect on international trade conditions and WTO negotiations
Impact of enlargement on the EU • Unprecedented scale of the enlargement • The further enlargement which would include Bulgaria and Rumania and in future the Balkan States and probably Turkey • The role and importance of agriculture in the new Member States • The significance of the agricultural sector is increasing in the policy and in the EU-trade negotiations • The amendments of the EU-position in the world trade and trading negotiations ?
The WTO negotiations – view from PolandAim for balanced, comprehensive results which will secure family farming style of European agriculture • Complete agreement, equal share of commitments • Gradual evolution of support for farmers • Inclusion of Non-Trade concerns in the final package