Glickman Criticizes European Union's Agricultural Policy Reforms

Secretary of Agriculture Dan Glickman says the European Union's Common Agricultural Policy reform decision is a "disappointment" not only to the United States but to all agricultural producing nations.

 "EU agriculture ministers had an opportunity to make much needed reforms to their farm policy.  Failing to do so makes it even more important that we strive for genuine reform in the upcoming round of multilateral trade negotiations," Glickman said.

He said the "reforms" are "not much more than maintaining the status quo...it appears there will be no reform of dairy policies for several years, and intervention price cuts are modest at best."

The ministers approved a plan to reduce the EU's guaranteed grain price by 20 percent phased in over two years.  Dairy support price decreases of 15 percent were delayed three years.  Beef support prices will be reduced by 20 percent.

European criticisms of the plan centered on funding.  Total spending could reach US$44 billion a year with another 7 billion euros added over the reform period that extends from 2000-2006.

Still, Portugal officials said they believed their country will benefit from the reforms; Sweden said it was pleased with the deal; Ireland's government was pleased that the reforms would prevent financial losses to the country's agricultural sector; Finland cheered the compromised plan, and Denmark gave qualified support.