Month: May 2025

US-UK DEAL : the beginning of the unravelling of the WTO framework ?

Posted on - Posted by Farm Europe

The US and the UK announced recently that they had concluded a trade deal. Little is known about its nitty gritty, the announcements provide only some general remarks and few details. More negotiation is needed before a full-fledged trade deal is reached.

Having said that there are already a few specifics, in particular on agriculture trade. According to the US “This trade deal will significantly expand U.S. market access in the UK, creating a $5 billion opportunity for new exports for U.S. farmers, ranchers, and producers. This includes more than $700 million in ethanol exports and $250 million in other agricultural products, like beef.”

From the UK side we know there was agreement to zero tariffs on ethanol, and beef for a limited 13 000 tonnes quota. There are no specifics on other agriculture products, although one could expect most tariff lines to become tariff free. The UK was also careful to point out that they will keep their SPS standards, meaning that only hormone free beef and non-chlorine treated poultry will be allowed. By so doing the UK also avoids problems in her FTA with the EU.

Thus, from what we know so far only a very limited impact is expected on beef and poultry exports. The impact on the UK ethanol market will however be much larger. And there is a big question mark on what will happen to trade in pork, dairy, wine and spirits, fruit juices, cereals, and other products, although as said above the expectation is that trade will mostly be tariff free.

From what is known we can draw some additional relevant points:

  • The UK for the first time after Brexit has stricken meaningful trade deals with big partners: India, followed in the same week by the US; it should be recalled that it was the US under the two previous administrations that blocked any progress on a trade deal with the UK; therefore for the first time after Brexit the EU will be facing additional competition in the UK market;
  • The 10% across the board US new tariff stays on, the UK does not apply any reciprocal tariff; the willingness of the US to stick to the new 10% basic tariff on the deals to come seems confirmed;
  • The deal is blatantly outside basic WTO rules; the concessions made by both sides are bilateral only; the deal is not a free-trade deal as the US keeps her basic new 10% tariff; thus, the deal violates the basic Most Favoured Nation principle, which stipulates that outside a legitimate FTA any tariff and other concessions should be extended to all WTO members.

We are therefore witnessing the beginning of the unravelling of the WTO framework in trade between major players. The expectation is that if the US manages to strike more deals with other major players as announced, the unravelling will get wider. Will we be left with two types of trade deals co-existing, one WTO compliant as the EU is adamant to safeguard, and the other tailored by bilateral negotiations? Will the WTO survive? Or much less likely as the US does not seem interested, is a WTO profound reform the way out to keep shared world trade rules?

Simplification, finally

Posted on - Posted by Farm Europe

PRESS RELEASE

BRUSSELS, 14 May 2025 — Many have talked about simplifying the CAP, but very few have taken action. Farm Europe welcomes the fact that the European Commissioner for Agriculture, Christophe Hansen, has set out to make real progress in this area, enabling the EU to turn its backs on the most damaging provisions to the credibility of the Common Agricultural Policy generating obvious and unnecessary over-administration in view of its performance.

The proposed simplification package will remedy the most obvious inconsistencies in the new performance framework introduced by the previous reform. The European Commission is sending a welcome signal that it intends to make regulations consistent with agronomy, the reality of farmers’ work and their practical needs in order to combine agricultural production and sustainability, including through the long awaited simplification of certain GAECs. 

A new approach to national plans

With regard to the implementation of the CAP in the Member States, the Commission’s objective of focusing its added value on strategic changes to national plans, rather than discussing minor details or rejecting pragmatic proposals, as has been the case since 2023, is a step in the right direction. However, the Commission must fully play its role in ensuring that the ambitions of the NSPs are consistent with each other, by facilitating the most pragmatic implementation. This work is particularly necessary with regard to the GAECs. Some countries have over-complexified their implementation. For example, this is the case for a handful of Member States with regard to the implementation of the BCAE5, which heavily penalises certain sectors and threatens the integrity of the internal market, without any agronomic justification. 

With regard to the small farmers scheme, Farm Europe calls for fair competition within the EU, not only between countries, but also between farmers, so that everyone can contribute to the objective of sustainability, regardless of the size of their farms. This tool should remain targeted at structures that are furthest from any administrative capacity and have very low market integration. 

European crisis management is cheaper than at national level

Furthermore, some simplification of risk management tools at national level are welcome, but Farm Europe has concerns about the risk of purely national management of agricultural crises. The establishment of crisis reserves by Member States sends an ambiguous signal, given the disorderly management through variable state aid authorised in response to Covid and the war in Ukraine. The measure proposed in this simplification package must not replace a strengthened European crisis reserve. To be truly effective, the management of severe crises can only be carried out at Community level, through a mechanism combining solidarity, incentives to strengthen risk management tools on farms and the takeover of these tools by Europe in the event of serious crises. 

This is a question of economic effectiveness and efficiency in the use of public funds. According to Farm Europe’s estimates, a European crisis reserve of €2 billion costs five times less than separate national crisis reserves providing the same level of coverage. As the Draghi report pointed out, mutualisation and solidarity are pillars of European ambition, but also of budgetary pragmatism.

Forum 2025: The Urgency of a Recovery Plan for European Agricultural Production

Posted on - Posted by Farm Europe

On the occasion of the Global Food Forum opening on May 12th — marking its 10th anniversary — Farm Europe will unveil the updated version of its radar on the sustainability and sovereignty of EU food systems. A new indicator will be introduced, highlighting the erosion of traditional strongholds of European agriculture — particularly arable crops and livestock. This trend is linked to worsening socio-economic indicators, despite continued improvements in environmental performance.

The Forum, which gathers over 150 political and economic leaders in European agriculture, will focus on concrete strategies to “restart the sustainable growth engine of European agriculture” and respond to the increasing demand for agricultural products both within Europe and globally. According to Farm Europe’s analysis, agricultural production in Europe will need to grow by 13% by 2030 and 25% by 2050 to lay the foundation for real strategic autonomy on the continent.

The long-term sustainability and sovereignty radar is an analytical tool that evaluates the ongoing dynamics and health of the EU’s agricultural and food sectors through 12 dynamic indicators and 12 status indicators.

It shows that the European Union remains an agricultural power, with a solid trade balance in food products — both plant- and animal-based. Additionally, environmental transitions are well underway, with positive trends in indicators related to the use of harmful phytosanitary products and emissions.

However, the main weaknesses remain socio-economic indicators. Agricultural incomes continue to decline, and restrictive policies are limiting the capacity of European agriculture to meet demand for animal feed and bioeconomy raw materials.

Deterioration of Historic Strengths

Beyond overarching trends, the new indicator unveiled at the Forum reveals recent developments. It highlights a rapid decline in agricultural sovereignty indicators in areas where the EU has traditionally been strong: cereals and meat. Socio-economic indicators continue to worsen, with accelerated restructuring and falling farm incomes, despite a slight increase in household food budgets.

On the environmental front, indicators show ongoing improvement. Emissions from production are decreasing, the shift in the structure of pesticide sales continues, and water quality is improving — though the challenge is now shifting to water availability. However, the decline in livestock farming is causing loss of grasslands and associated carbon stocks. Contributions to the bioeconomy are mixed: while biogas production is growing, strong import pressures are undermining EU bioenergy production and its strategic autonomy.

These trends are closely tied to global geopolitical dynamics, climate change challenges, ongoing structural transformations in the agricultural sector, and political choices made in recent years by the European Union. Reversing these trends is an urgent matter. Farm Europe estimates that EU agricultural production must increase by 13% by 2030 and 25% by 2050 to meet the needs of a decarbonized economy.

Recent years have seen a decline in public investment at the EU level, including an €85 billion reduction in Common Agricultural Policy funding during the 2021–2027 period (in real terms compared to 2020). Inflationary shocks have only been partially offset by national measures, and unevenly across EU Member States, leaving some countries lagging behind.

In this context, Farm Europe is calling for a genuine recovery plan for European agriculture, involving the mobilization of necessary budgetary resources and better alignment of all EU policies affecting agriculture — to trigger a sustainable intensification of production.

Balanced diet, economy, environment: livestock farming is an opportunity for Europe

Posted on - Posted by Farm Europe

Farm Europe welcomes the European Commission’s announcement of the launch of a dedicated work stream on livestock farming and wishes to contribute fully to its development by presenting its proposals for a renewed EU strategy for the livestock sector. Farm Europe believes that the European Union must turn the page on five years of preconceived ideas and an erroneous, pessimistic and negative view of livestock farming. In the face of nutritional, economic, climatic and environmental challenges, ‘Made in Europe’ livestock farming is an opportunity, both for our continent and for the planet. In the context of geopolitical tensions, the EU must secure its strategic autonomy more than ever. 

“An ambitious strategy for the EU livestock sector must be able to rely on a comprehensive toolbox for consolidating achievements, economic support to better protect and help the sector to bounce back, and targeted investment to meet the challenges and build the livestock sector of the future, capable of permeating all the territories of our continent, from less favoured areas like mountains to intermediate and more productive areas where the complementarity between crop and animal farming is an asset”, underlined Ettore Prandini, Chair of Farm Europe’s strategic committee on the occasion of the Conference on the vision for agriculture and food organised by the European Commission. 

The future strategy should allow to : 

  • Bring back production in Europe
  • Fully optimising the positive benefits of livestock farming
  • Invest and prepare for the future
  • Put an end to the frenzy of standards and instead focus on a strategy that creates added value and market segmentation
  • Fully value and contribute to the deployment of the bioeconomy 

These five basic principles should enable the livestock sector of the future to be economically resilient, at the heart of a genuine strategy of European agricultural sovereignty and, finally, fully committed to the fight against climate change, to animal welfare and to the protection of natural resources through a real valorisation of its contributions and an optimisation of its impacts, as well as a source of prosperity. 

They must also make it possible to build a common and shared vision at the level of the European Union, turning the diversity of the Union’s territories and know-how into an asset. Finally, they will be a fundamental lever for restoring the attractiveness of livestock sectors to a new generation of livestock farmers who are committed and confident in their future. 

To enable the construction of a solid consensus, we recommend to the European Commission to resume the approach that proved effective for the wine sector with the creation of a High Level Group by bringing together European officials, representatives of economic actors and representatives of the national ministries and regional authorities most involved in the future of livestock farming in the Union. 

Such an initiative should not only facilitate the emergence of a consensus, but also enable the development of a precise roadmap for its implementation over the next 5 years, providing the necessary visibility for economic actors shaken by the climate of uncertainty created by the orchestrated and instrumentalised negative campaigns of recent years. 

In this context, bringing together the results of recent work and reflections, Farm Europe has prepared its initial contribution to what could be a livestock strategy, in the form of a brochure highlighting that this sector is an opportunity for Europe and the importance of complementarity between the animal and plant worlds. This document is available here, and will serve as a basis for the future work of Farm Europe: