WRITTEN QUESTION E-1688/97 by Wolfgang Kreissl-Dörfler (V) to the Commission (20 May 1997)

Subject: Implementation of Agenda 21 (export subsidies)

Five years ago, in 1992, the international community meeting at the UNCED Conference in Rio agreed on the objectives of Agenda 21. Part I, chapter 2, of the Agenda attaches considerable importance to removing the existing distortions in international trade. To achieve this, it says, a massive and continuing phasing out of subsidies and aid for agriculture is required.

As the example of export subsidies for beef to South Africa has shown, five years after the adoption of Agenda 21 the EU's subsidies policy is a threat to the development of the countries of the South. How does the EU think it can comply with the obligations of Agenda 21 in this respect? Has the Commission subjected its export subsidy policy to a thorough review in this respect? What conclusions has it drawn? Has it already published its studies on this matter, or does it intend to do so?

Answer given by Mr Fischler on behalf of the Commission (4 July 1997)

The Community has played a leading role in the United Nations conference on environment and development conference in Rio in 1992 and in the follow-up concerning the implementation of Agenda 21. Both the Member States and the Commission seek to ensure that the United Nations general assembly special session later this year will further stimulate the world-wide implementation of Agenda 21.

The agricultural part of Agenda 21 was further considered in the third session of the commission for sustainable development (CSD) in 1995 which issued a balanced set of recommendations concerning agriculture and rural development in relation to Agenda 21. They ranged from food security, poverty and community development, land-use planning, attention to small farmers on marginal lands, protection of resources, research, energy and genetic resources.

Specifically concerning trade in agricultural commodities, the CSD viewed the full implementation of the Uruguay round as an important contribution to an undistorted sectoral and economy-wide policy framework for sustainable development while the impact of trade liberalisation should be monitored. The Community has adopted the legislation necessary to ensure the correct implementation of the reduction commitments under the Uruguay round.

In addition, the 1992 reform of the common agricultural policy helped bring balance to agricultural markets and reduce the need for export subsidies while also taking environmental protection requirements into account. The reform, which has been fully implemented, reduced price supports and introduced decoupled income support, hence reducing public incentives for intensive production. Since 1992 there has been further progress on reforming the common market organisations for agricultural products. The market organisation for fruits and vegetables was recently changed to a more market-oriented approach. Further development may be expected, extending the 1992 reforms where they have not yet been introduced and deepening them where they need to go further. The instrument of price support is thereby likely to decrease in importance. This can also help farmers to take advantage of new opportunities on the world market. The Community is committed to the full

implementation of the Uruguay round and the continuation of this process, in particular by the quantitative and budgetary reduction of export refunds. However, market liberalisation and the elimination of support do not automatically improve the environment, achieve rural development or help the poor and hungry in developing countries. Accompanying policies securing the multifunctional character of agriculture are needed to achieve these aims.