33 rd IPC Plenary Meeting and S eminar May 1 6-17, 2004

1. 33rd IPC Plenary Meeting and Seminar May 16-17, 2004 Agricultural Trade Negotiations: Politics and Prospects Jerzy Plewa, Poland

2. Key questions • What influence decision making process concerning negotiating positions? • Who are the main players in this process? • What is a weight of economics and politics? • Are there any other concerns (social, environmental, cultural)? • What leads to mutual agreements and is a “win-win” result possible in multilateral trade negotiations?

3. Simultaneous processes • European enlargement • Reform of the Common Agricultural Policy • WTO negotiations

4. General information on Polish agriculture • The number of agricultural holdings – 1,8 millin • The total area of utilized land – 18.3 million ha • An average farm size – 8.44 ha • The share of agriculture in GDP – 2.7% • The inhabitants of rural areas – 8 504 900 people (38% of total population)

5. Economics of Polish agriculture • PSE (2002) – 14% • Total support for agriculture and rural development in 2002 - 1 billion EURO or 2.7% of total Poland’s budgetary expenditure • „Price squeeze” year 2002 – 65.5 year 1990 – 100

6. The adjustment of Polish agriculture to the new conditions • Response to the consumers demands (marketing, public relations, image) • Response to the increased competition (trade balance, price fluctuation) • Response to the legal obligations (certification, adoption of standards)

7. The number of establishments complying with EU requirements and which received transitional periods

8. Poland is open for the CAP reforms • Simplification CAP and decoupling is supported by Poland • More focus on rural development – increasing role of II pillar • Environment and landscape protection- in our interest • Preserving biodiversity and multifunctional agriculture - our aspiration • The same treatment of all farmers form the EU 25

9. Concerns of New Member States • extension of the phasing-in mechanism on new direct payments introduced in some sectors, including milk, energy crops • freezing of the milk quotas until 2014 (this is especially important in Poland)

10. CAP reform – General evaluation • changes in the CAP support a multi-functional European agriculture • support dependent on compliance with agro-environment standards • increasing funds for rural development • limiting payments for large, intensive farms • positive effect on international trade conditions and WTO negotiations

11. Impact of enlargement on the EU • Unprecedented scale of the enlargement • The further enlargement which would include Bulgaria and Rumania and in future the Balkan States and probably Turkey • The role and importance of agriculture in the new Member States • The significance of the agricultural sector is increasing in the policy and in the EU-trade negotiations • The amendments of the EU-position in the world trade and trading negotiations ?

12. The WTO negotiations – view from PolandAim for balanced, comprehensive results which will secure family farming style of European agriculture • Complete agreement, equal share of commitments • Gradual evolution of support for farmers • Inclusion of Non-Trade concerns in the final package

13. This picture of Polish agriculture belongs to the history