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European Farmers and Cooperatives’ reaction after US announcements to hit EU goods with new tariffs after WTO ruling
Oct. 7, 2019
In the framework of the recent decision of the WTO panel setting USD 7.5 million annually for retaliation, Copa and Cogeca call on both parties to avoid any agri-food related escalation and for their commitment to negotiate trade aspects in an orderly manner, respecting the multilateral trade agreements. The EU farming community supports the Commission’s efforts to find mutually beneficial solutions for this non-agricultural matter via negotiations.
Reacting to the USTR decision, Pekka Pesonen, Copa and Cogeca Secretary General said “We deeply regret that the agricultural sector is once again paying the bill for a political decision on trade that has nothing to do with agriculture. As Commissioner Malmström said, creating volatility in international trade could be short-sighted and counterproductive not only for international trade but also regarding the key challenges that EU and US farming communities will have to face in the fight against climate change, food security and generational renewal. Farmers, on both sides of the Atlantic need stability and trust in order to make long term investments to remain competitive and attractive. We call on decision makers to create a more predictable trade environment, for the benefit of the farming community and consumers across the world.”
The EU and the USA, together with other western nations share some concerns with respect to improving the WTO (regarding for example currency manipulation, favorable status for developing vs developed countries, reform of the functioning of the Appellate Body, forced transfer of technology and intellectual property). From the EU farming perspective, we must create a more predictable international trading environment through the WTO. The weaker the WTO, the more risks and the more volatility farmers and agri-cooperatives around the world will experience.
In many ways, farmers and agri-cooperatives on both sides of the Atlantic share a common vision regarding consumer orientated high quality produce, high food safety and consumer protection, enhanced sustainability and science base decision-making. Even if the approches are different, we always agreed on our common objectives.
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