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European farm ministers have ended three weeks of negotiations with a deal which they claim represents genuine reform of the common agricultural policy(CAP).Will it be enough to kickstart the Doha world trade negotiations?
On the face of it,the deal agreed in the early hours of Thursday June 26th looks promising.Most subsidies linked to specific farm products are,at last,to be broken—the idea is to replace these with a direct payment to farmers,unconnected to particular products.Support prices for several key products,including milk and butter,are to be cut—that should mean European prices eventually falling towards the world market level.Cutting the link between subsidy and production was the main objective of proposals put forward by Mr Fischler,which had formed the starting point for the negotiations.
Developing countries have lined up alongside a number of industrial countries to demand an end to the massive subsidies Europe pays its farmers.Several Doha deadlines have already been missed because of the EU’s intransigence,and the survival of the talks will be at risk if no progress is made by September,when the world's trade ministers meet in Cancùn,Mexico