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Agriculture and food policy perspectives in trade negotiations

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Seminar: Effects of the EU bilateral trade agreements on agriculture and food sectors, Säätytalo 16.12.2016
Mrs Aulikki Hulmi, Director for International Affairs, Ministry of Agriculture and Forestry

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Agriculture and food policy perspectives in trade negotiations

  1. 1. 16.12.2016 1 Agriculture and food policy perspectives in trade negotiations Effects of the EU bilateral trade agreements on agriculture and food sectors Säätytalo 16.12.2016 Aulikki Hulmi Ministry of Agriculture and Forestry
  2. 2. 16.12.2016 2 Agriculture is a key part of EU trade policy and trade policy is an important part of CAP • Agri-food trade 7% of EU trade value, but 25% of positive trade balance; EU is net exporter since 2010 • EU is the world top exporter and importer of agri-food products • Trade has direct effect on market prices • Stabilizing of imports and exports as a means to address market volatility is essential to reaching objectives of the CAP • Trade concerns food security, safety and values of consumers
  3. 3. Understanding the big picture of trade agreements? • Commission Cumulative economic impact report is a good contribution, but it is important to take into account the limitations: • No attention to: – Tariff Rate Quotas – Changes in non-tariff measures – Agreement with Ukraina • Further understanding needeed: – Regional effects – Adjustment of European agriculture 16.12.2016 3
  4. 4. TTIP case study reflecting impacts of essential agreement • TTIP is especially important also for agriculture: – USA is a major agri-food producer and major market for high quality EU products – Reconciliation of differing regulatory approaches • Luke and VATT report is an important effort to model: – Role of NTMs compared to just tariff removal – Reflect regional implications 16.12.2016 4
  5. 5. European Agriculture needs defence • Some sectors are more sensitive than others: Tariff Rate Quotas are and will be necessary to balance trade flows • CAP measures applicable to balance effects of trade deals • Special attention for regions with less favourable production conditions 16.12.2016 5
  6. 6. European consumers deserve safety and knowledge • Most non trade ”barriers” in agriculture are a result of determined policy to guarantee food safety • Precautionary principle is a valid consept of international trade • Significant amount of consumers care about environment and animal welfare -> Consumers have right to know where and how food is produced 16.12.2016 6
  7. 7. Exploit new food export markets for EU products • Trade agreements open potential for competitive European food products • Finland is determined to get own share, government program: improve food trade balance by 500 m € • Food from Finland –export program and investment to meet export requirements • Commissioner Hogan’s trade missions a good way to get visibility for European food • EU export promotion programs to be developed to be more easily and equally accessible16.12.2016 7
  8. 8. Glance at future • Value chains make the picture more complicated – benefits for Finnish food production? • Agenda 2030, SDGs • Climate 16.12.2016 8
  9. 9. Thank you! 16.12.2016 9

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