The reform of the Common Agriculture Policy as agreed last year in Luxembourg has resulted in a continuation of the move from product support to producer support. The key for Ireland, due to my decision to go for full decoupling at the earliest date, is that the single farm payment will no longer be linked to the production of individual agricultural commodities. This complies with the criteria for the green box as set down by the World Trade Organisation.
The Organisation for Economic Co-operation and Development uses the term "non or minimally trade distorting" for the range of policies which do not have any significant impact upon production and I believe that this term applies to the decoupled payment regime now being established for Irish agriculture.
The recent reform of the CAP will be of benefit to developing countries as decoupled payments will replace production related supports, thereby reducing their impact and potential to distort trade and markets.