Phil Hogan: “I will continue to fight for our producers to have fairer access to non-EU markets”

By Milagros Jurado

In the following interview with ECA, Phil Hogan, European Commissioner for Agriculture and Rural Development, addresses, among other things, the most urgent issues concerning the Common Agricultural Policy (CAP); the need to seek effective remedies against unfair trade practices or to defend fairer conditions for European producers in trade association agreements with third countries in the EU.

e-Commerce Agrarian: according to the results of the public survey on the CAP, released in July of this year, citizens think that the future CAP should prioritize support for agriculture and environmental protection … what challenges is it facing the EU to continue to manage the Common Agricultural Policy, as requested by the citizens, and to be able to fulfill those objectives?

Phil Hogan: in simple terms, these two issues, how to help farmers and at the same time ensure that European agriculture is sustainable, will have to be reconciled in any future developments of the Common Agricultural Policy (CAP). I am convinced that the European Commission, the European Parliament and the governments of the EU Member States must remain united in sharing these objectives.

“The CAP is an essential policy that benefits all 500 million EU citizens through the provision of safe food and public goods, especially organic products”

ECA: one of the most defended issues in the agricultural sector is that, in order to ensure a strong CAP capable of meeting the current and future demands of the agricultural sector and of society as a whole, a sufficient financial framework must be created … Do you think that BREXIT can represent a serious obstacle to this demand?

P.H.: the question of the budgetary allocation of the CAP for the next programming period is something to be negotiated in the context of discussions on the MFF. The UK’s decision to leave the Union will have many profound implications, one of which will be the question of how to bridge the gap in the EU budget or certainly how to do more with less if the UK contribution can not be fully replaced. This is, of course, part of the ongoing negotiation process between the EU and the United Kingdom.

ECA: entering market issues, which are the most directly touching the producer’s pocket and can jeopardize the profitability of an activity on which the food supply depends on the population, what solutions are discussed within a future reform of the CAP to avoid the imbalances that occur in the food chain in favor of the large distribution and to reinforce the position of farmers and ranchers within the Value Chain?

P.H.: Unfortunately, these imbalances are a daily occurrence for many people in the food chain in the European Union. But we have some solutions. For example, we can do more to help farmers organize and thus improve their bargaining power. This organization already exists in the form of cooperatives and producer organizations, but it can be done even more.

For our part, as policy makers, we need to ensure that the Common Agricultural Policy sets the right regulatory framework to help these organizations grow and function more effectively: Farmers clearly have no incentive to join these organizations if the rules they mean even more bureaucracy and paperwork. But we need organized farmers who are in tune with what markets demand, concentrate supply, find cost-saving efficiencies that can move to production stages with a higher added value, making full use of new opportunities in the markets and for their production processes: this will help them to remain solidly standing.

It is also necessary to control the abuse of bargaining power by the stronger players, such as processors and retailers.

“I am currently carrying out an impact assessment, which will examine the options available to the EU to carry out vigorous action that can provide an effective remedy against unfair commercial practices”

Together with voluntary sector initiatives in this area, this could be an important additional step to support farmers’ demand and improve the overall functioning of the food supply chain. Finally, we are also analyzing the role that the Commission could play in strengthening market transparency in the food supply chain for the benefit of farmers.

But we must also leave ourselves room for maneuver for ad hoc measures that can help mitigate pressure when unforeseen events, such as the Russian embargo, occur. The Commission has shown that it defends its farmers in these difficult situations. We will have to continue to do so.

ECA: with regard to imports from third countries, would the future CAP include measures to reconcile these economic partnership agreements with the application of the same standards and quality requirements as are required for Community productions?

P.H .: Improving market access for EU agricultural products is one of the key priorities of trade policy.

“I pay special attention to the fruit and vegetable sector because our producers too often face obstacles stemming from unjustified and cumbersome phytosanitary requirements imposed by many of our trading partners”

In the specific case of our economic association agreement with Mexico, I have raised the issue of market access for our horticultural products on several occasions with my Mexican counterpart and now I am reasonably sure that the modernized free trade agreement will, along with a further tariff liberalization, enhanced sanitary and phytosanitary provisions. Such provisions should facilitate trade and improve the situation for our producers and exporters. In fact, we are already experiencing improvements: the recent approval of the Netherlands to export pears to Mexico without prior clearance is one of these successes, even though the process itself will last for four years!

The approach taken in addressing both tariff and non-tariff barriers faced by EU exports is also valid for negotiations with Mercosur. There is undoubtedly much to be done with Mexico and Mercosur, as well as with other trading partners, and I am determined to continue fighting during all the trade negotiations so that our producers obtain fairer market access.

“European farmers produce excellent food and I want consumers around the world to enjoy them. This remains the basis of our reflection for the future”

ECA: if we focus specifically on the fruit and vegetable sector, what measures are planned from the EU to protect European productions from imports from third countries? Is it envisaged, in response to one of the main demands of the sector, to strengthen the phytosanitary controls of these imports to prevent the spread of pests and diseases through them?

P.H .: imports of agricultural food products, including fruit and vegetables, must comply with EU food safety requirements that apply to EU products. In addition, fruits and vegetables, whether imported or produced in the EU, must meet the same EU marketing standards. As regards phytosanitary controls, in 2016 the European Union adopted new phytosanitary legislation which will considerably improve the protection of the Union’s territory and its plants and ensure that fruit and vegetables can be safely imported into the EU.

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