HC Deb 15 July 2003 vol 409 cc149-50W
Mrs. Browning

To ask the Secretary of State for Environment, Food and Rural Affairs what changes the Agreement on CAP Reform agreed on 26 June will have on Britain's(a) gross and (b) net contribution to the EU Budget. [124350]

Mr. Bradshaw

[holding answer 8 July 2003]The Government's latest forecast of the trend in the UK's net contribution to the EC Budget for the period 2003–04 to 2005–06 were included in a footnote to Table C 11 of the 2003 Budget Report (HC 500). These figures were also shown in Table 3.3 of the 2003 Annual White Paper "European Community Finances (Cm 5800). Revised forecasts will be included in the pre-Budget Report and will take account of all of the latest factors, including those on CAP reform.

Mr. Gibb

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of how much of the budget for the planned reform of the Common Agricultural Policy contributes to(a) trade distorting and (b) non-trade distorting initiatives. [123961]

Mr. Bradshaw

It is not yet possible to make an accurate forecast of how the Common Agricultural Policy (CAP) budget will be allocated between trade distorting and non-trade distorting measures since member states have discretion in implementing the various optional arrangements included in the reform agreement. Moreover decisions remain to be taken on reforms of the sugar, cotton, tobacco and olive oil regimes. However, the Government's initial estimates indicate that the EU is now close to meeting WTO demands for a 60 per cent. reduction in amber box subsidies and can fully meet the WTO proposal for a 50 per cent. reduction in blue box payments.

Mr. Gibb

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of how reform of the Common Agricultural Policy will affect agricultural producers in the developing world. [123962]

Mr. Bradshaw

The reform of the Common Agricultural Policy should provide direct and indirect benefits to agricultural producers in the developing world. First, the decoupling of subsidy payments from production, together with reductions agreed in some market support arrangements, will reduce EU over-production and subsidised exports of surpluses onto world markets at prices which undermine developing country markets and economies. Secondly, the impetus which these reforms should give to a successful Doha trade round will help to bring about wider development gains, not least through global action on agricultural subsidies.

The EU Commission will also bring forward proposals during the next few months for reform of the sugar, oil, tobacco, cotton and olive oil regimes, all of which are of importance to developing world producers.