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EU CAP Enlargement: The Commissions Proposal

On January 30, 2002, the European Commission presented its proposal for extending the Common Agricultural Policy to ten Eastern and Central European countries.  The proposal, which includes specific budgetary allotments per candidate, will be discussed by member states.

In 2004, ten countries are expected to join the fifteen countries currently comprising the European Union.  The ten candidates are Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.  Key points in the Commission’s proposal include a ten-year transition period for direct payments combined with a substantial amount of funding for rural development measures.  New member countries, which are already providing direct aids to farmers, will be able to supplement EU payments with national funds.  For the new member countries, the payment would be phased in over ten years, starting at 25 percent of the EU level in the first year, 2004/05.  The payment would then increase five percent per year for the next three years.  The payment would increase gradually for the next six years. 

The Commission's proposal will be debated in the Council, which is expected to decide on a Common Position by June 2002.  Only then can negotiations with the candidate countries begin.  Due to the highly political nature of the budgetary questions, the negotiations on agriculture are expected to last into December.  Once negotiations are complete, the European Parliament has the right to assent or dissent to the accession treaty as a whole (they may not propose amendments) and member states as well as accession candidates must also ratify the treaty according to their procedures.  If negotiations are completed by the end of 2002, accession could likely take place by 2004, as currently anticipated. 

The Commission proposes to use data from 1995‑1999 to establish supply management instruments such as production quotas, arable crop base areas and beef premium ceilings.  The most appropriate reference period for each type of scheme would be chosen within this framework.  While the Commission proposal includes specific quota amounts, and other instruments per accession candidate, the final negotiated amounts are expected to be highly controversial and political and are not likely to be decided until the end of the negotiations in December 2002. 

The Commission proposal suggests increasing current Community Thresholds for aid for processing to account for the new member states. 

Processed Fruits and Vegetables 

Current Community thresholds for the products in question are as follows (in tons): 

 

Tomatoes

Peaches

Pears

Oranges

Lemons

Sm. Citrus

Grapefruit

 Threshold

8,251,455

539,006

104,378

1,500,236

510,600

384,000

6,000

Proposed increase for Community thresholds (** means insufficient/unsuitable data provided) 

Country/product

Requested increase

Average Historical Production ‘97-‘99

Proposed increase

Cyprus

 

 

 

-Tomatoes

10,000

4,641

4,770

-Peaches

500

**

**

-Pears

500

0

0

-Lemons

5,000

3,548

2,986

-Grapefruit

30,000

9,069

10,812

-Oranges

21,000

15,438

14,969

-Small citrus

10,000

1,007

937

Czech Republic

 

 

 

-Tomatoes

26,000

**

**

-Peaches

4,000

**

**

-Pears

500

**

**

Hungary

 

 

 

-Tomatoes

321,442

127,265

130,790

-Peaches

1,000

11,692

13,808

-Pears

1,000

**

**

Malta

 

 

 

-Tomatoes

50,000

**

**

Slovakia

 

 

 

-Tomatoes

36,000

**

**

Information for this report was prepared by Christine Strossman, USEU Brussels, 011-32-2508-2760 and Robert Knapp, Horticultural and Tropical Products Division, 202-720-4620. For further information download Report #22014 dated 2/5/02 from the FAS.


Last modified: Sunday, March 17, 2013