§ 3. Mr. Gordon Marsden (Blackpool, South)If he will make a statement on the impact of EU agricultural reform on the developing world. [124274]
The Parliamentary Under-Secretary of State for International Development (Mr. Gareth Thomas)The agreement reached by the Agriculture Council on 26 June will benefit developing countries, as well as European farmers and taxpayers. The most important change is the de-linking of support from output, which should begin to reduce excessive production, the dumping of which harms developing countries. The agreement also paves the way for reforms to other EU commodity regimes and, most importantly, should give new momentum to the current round of World Trade Organisation negotiations, which are vital for the future economic growth and prosperity of developing countries.
§ Mr. MarsdenI wish to pass on thanks and congratulations to the Government on everything that they have done to achieve that first welcome start in common agricultural policy reform, but does my hon. Friend agree with those trade justice campaigners whom I met recently in Blackpool that reforming the world trade rules is essential to protect developing countries and to prevent dumping—principally, the dumping of agricultural products by American multinational companies? Will he give an assurance that, at the WTO conference in Cancun this September, the Government will put very strong emphasis on reforming the system to benefit developing countries, so that poor banana growers in St. Lucia or cotton growers in Kenya do not find their livelihoods disrupted by unfair trade rules?
Mr. ThomasI am grateful to my hon. Friend for his comments. As he says, the CAP reform process in the Agriculture Council is a first significant and serious reform. It injects some new momentum in the run-up to Cancun at a time when we have missed a series of 1145 deadlines. As we in Europe have moved, it is now up to others, particularly our friends in America and in the Cairns group, to give some ground, too.
§ Mr. Andrew Robathan (Blaby)But can the Minister confirm that the fudged and inadequate reform of the CAP will allow the continued dumping of subsidised agricultural produce on the developing world? Can I refer him to a letter that he sent today to my hon. Friend the Member for Salisbury (Mr. Key), who did the job that I am currently doing extremely well? It says that
you will be aware that this"—the peace clause—is due to expire on 31 December…Although the European Union is pressing for its renewal as part of a new WTO Agreement on Agriculture, proposals currently on the negotiating table contain no such provision. Failure to extend the Peace Clause would mean that domestic support measures…would be open to challenge in the WTO.Does that mean that we can look forward to all-out trade war over agricultural produce, particularly subsidised EU produce, after 31 December?
Mr. ThomasI welcome the hon. Gentleman's return to international development in his first appearance on the Front Bench in that role. In my limited experience, I suggest that he will find the welcome short. In terms of his specific questions, he is wrong to be so negative about the process that was agreed. The Agriculture Council looked specifically at the direct support that is provided. We can now move on to look at the issue of export subsidies in the context of the WTO negotiations. In terms of the peace clause, we are continuing to negotiate on that issue, and we need to await the outcome of those negotiations.
§ Mr. Piara S. Khabra (Ealing, Southall)May I ask the Minister what are the prospects of CAP reform? Only yesterday, the members of the International Development Committee visited Brussels, and I was part of that delegation. We were given the impression by the EU Development and Co-operation Committee that perhaps CAP reform is not a priority, and that the EU common foreign and security policy will take priority over everything else.
Mr. ThomasLet me reassure my hon. Friend that CAP reform has been a fundamental part of our agenda. The result that we secured at the Agriculture Council, led by my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs, allows us to move forward significantly, and the series of measures has been welcomed by the least developed countries. Given the number of deadlines for progress that we have missed, as I mentioned, I hope that my hon. Friend will recognise that we now have the opportunity to move forward.
§ Tony Baldry (Banbury)Do the CAP reform proposals fully meet Harbinson 2 and the second modalities paper on the reductions of the blue box subsidies? What is the position now with regard to the amber box? Will the EU at the WTO seek to deal with 1146 export subsidies to broaden the measure to US export credits and dealing with food aid? What will be done to enhance market access for developing countries?
Mr. ThomasI pay tribute to the hon. Gentleman for his work on the International Development Committee. In terms of the Harbinson proposals, the CAP reform that we have negotiated allows us to engage seriously and to meet the Harbinson criteria for the agenda. In terms of the specific points about market access, we are committed to having negotiations in Cancun about market access, and we have made a series of proposals for tariff reduction including an overall average tariff reduction of some 36 per cent. and a minimum reduction of some 15 per cent. We have therefore given significant ground. It is now up to others to give ground on issues of market access, too.