Brit Ag Chief Questions U.S. Commitment

February 16, 2000

Britain. s agriculture minister, Nick Brown, says it. s difficult to explain to European farmers why the United States is considered further ahead in agricultural reform when Congress approves $9 billion in emergency aid on top of other benefits. Then, he adds, that is followed by President Clinton. s State of the Union address in which more billions in payments are announced.

In an address to the Brookings Institution, Brown said there are "high levels" of European Union tariff protection, "but high protection also exists for some products here in the United States; tariff rates for cheese can reach 50% and for sugar can exceed 150%."

The low level of agricultural export subsidies the United States uses in reports to the World Trade Organization often are compared with the much higher EU level. "But it doesn. t take into account the often generous export credits granted on United States. agricultural products which certainly ease their passage into world markets, nor does it reflect the tax breaks, available to U.S. exporters," said Brown.

Enlarging the EU to accept 12 new member states, mostly Eastern European, will have profound effects, Brown said. EU population will increase by a third, from about 380 million to more than 500 million, almost twice the U.S. population.

The new members also will further pressure the common agricultural policy "because of the large numbers of farmers and the tremendous cost if we were to apply the policy in full to them. The future new budget for the CAP just doesn. t provide enough money to do this, and it is therefore clear that further change in the CAP must happen," he said.

On genetically modified crops and foods, the British government "is very clear," he said. "We are pro-safety, pro-choice and pro-environment. At the same time, we continue to recognize the potential of this technology to bring considerable benefits to people in terms of the food that they buy and the environment in which we all have a vested interest."

"When the time is right," said Brown, "the prospects of achieving substantial further agriculture trade liberalization (through a new round of talks within the World Trade Organization) are good."