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Dáil Éireann debate -
Wednesday, 21 Mar 1990

Vol. 397 No. 3

Written Answers. - Agricultural Trading System.

Proinsias De Rossa

Question:

49 Proinsias De Rossa asked the Minister for Agriculture and Food the input he has had to date on the current round of farm price talks; his views of the US proposals on tariffs, in particular in relation to the importation into the EC of cereal substitutes, such as corn gluten, given the quota on grain in the EC; the proposals he has made at EC level to ensure the commercial viability of Irish farm production following any new GATT agreement; and if he will make a statement on the matter.

I assume that the question relates to the on-going Uruguay Round of GATT negotiations rather than to the current EC negotiations on the Commission's proposals on prices for agricultural products and related measures for 1990/91.

The GATT negotiations are conducted by the Commission on behalf of the Community on the basis of mandates agreed by the Council of Ministers.

In relation to agriculture the Community's approach is that while it is willing to participate in negotiations to progressively reduce support to the extent necessary to achieve balanced markets and a more market oriented agricultural trading system, the fundamental principles of the CAP must be preserved. The Community is also seeking a readjustment of external protection in relation to cereals substitute imports and full credit for the various agriculture reforms since 1986 which have contributed significantly to improvements on world markets. As Minister for Agriculture and Food, I have ensured that these points and the contribution which agriculture makes to the Irish economy have been continuously stressed in the discussions within the Community which have contributed to the establishment of the EC negotiating position and in discussions with Government and/or producer representatives both within the Community and internationally.

In the negotiations, the US has proposed that all non-tariff barriers to trade should be converted into tariffs which would then be eliminated over ten years. I do not favour this approach and the Commission has also indicated that this would not be acceptable to the Community.

Cereals substitutes enter the Community under arrangements agreed to in earlier multilateral negotiations. The Community is seeking to modify these arrangements in the current negotiations and has indicated that it is prepared to consider elements of tariffication to secure this. As there is an overall Community interest in securing increased protection against these imports, I can accept the Community's approach in this context.

My principal objective for the remaining period of the negotiations will be to seek to ensure that the outcome of the negotiations will not prevent the Community from continuing to support farming and rural areas generally and that farmers' incomes can be maintained at reasonable levels. In its agreed negotiations position, the Community is firmly committed to meeting these aims.
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