EESC sets stall for post-2020 CAP

EUROFILE: Direct payments will only go to active farmers and food producers

The European Economic and Social Committee (EESC), made up of member state representatives, has called for new core values for the post-2020 Common Agricultural Policy (CAP).

It wants direct payments to only go to active farmers and farm businesses producing food, based around the delivery of public goods.

It is also calling for an increase in the percentage of economic wealth member states contribute to the EU budget, so CAP spending can be maintained.

While this is only advice it reflects the mood of the moment across the EU on support for farming.

It also mirrors the approach suggested for farm support in the UK by the Defra Secretary Michael Gove, although his focus has been blown off course by his wider political interests.

The EESC is also calling for a 25% top-up in aid for young farmers. Worsening relations between London and Brussels over Brexit may be a negotiating tactic but it is looking less likely there will be progress on postBrexit trade arrangements by the heads of state EU summit next month.

This has long been the UK’s target for a deal, and failure would throw negotiations into further confusion.

This has prompted suggestions it could force the UK to stay in a customs union with the EU 27 for up to two years beyond the already agreed transition deal from next March.

This has been rejected by the government in London but it has not yet produced an alternative to avoid a “no deal” hard Brexit.

These are key issues for an exportdependent industry like agriculture, which is also keen to avoid a surge in cheap third country imports.

There are also growing signs the EU will not allow the UK to maintain any involvement in EU institutions. This would force the UK to set up new legislation and other mechanisms in agriculture to ensure it can be seen to meet EU and global standards. The European Commission is continuing to inch towards a trade deal with the Mercosur countries of South America.

This is despite the ban it imposed on health grounds against a third of Brazil’s export poultry plants.

Central to the deal will be a 99,000 tonnes reduced tariff deal for beef. This is almost twice the original suggestion from Brussels, and comes despite Brussels accepting the deal will damage the European beef industry.

For the EU the prize will be access to South America for industrial goods, but Mercosur and the concessions it offers have been criticised by the farming lobby. A deal is now expected by July, although past forecasts have slipped at the last minute.

Still to be decided is whether the 99,000 tonnes will have to be split between frozen beef for manufacturing, which would cause minimal damage, and higher value fresh cuts. The deal in the offing could be the basis for a similar post-Brexit deal with the UK.

The Mercosur countries are Brazil, Argentina, Uruguay and Paraguay.

Picture: Getty Images. Uncertainty: The UK’s target of a post-Brexit trade deal is looking less likely.