New trade negotiations may lead EU to reform farm export subsidies 

Against a background of growing pressure to reduce farm subsidies and trade barriers, farm ministers have defended the CAP reform during an informal Council on 9 May. They consider having sufficiently reduced trade-distorting farm support, in particular as far as market price guarantees and export subsidies are concerned. Overall, the Irish Presidency insists the continuing pressure on the EU to reform its subsidies system is unjustified.

A Presidency paper stated that greater efforts might be needed to communicate what benefits its farm reforms would bring to international agricultural trade. "If the EU does not succeed in this, there is a danger that the future of the EU's agricultural policy will be determined, not by the Council of Ministers, but by external forces, as WTO partners continue to demand further changes from the EU," the paper says.

In a few days, trade officials and diplomats from five core WTO members - the EU, Australia, Brazil, India and the United States - are due to meet in Paris to try to kickstart trade talks. Their meeting is expected to focus on lowering barriers to agricultural imports, one of the biggest stumbling blocks in the 'Doha round' of trade negotiations. European unwillingness so far to eliminate farm subsidies by a certain date has been a major obstacle to reaching a deal on agriculture in the stalled World Trade Organization negotiations, which also cover industrial goods and services.

The Commission seems willing to adopt a more flexible stance to revive progress in the WTO talks. On 10 May, it will offer to eliminate farm export subsidies and to soften demands on new trade rules on competition, investment, transparency in government procurement and trade facilitation, the Financial Times reported.