16.12.2016 1

Agriculture and food policy

perspectives in trade negotiations

Effects of the EU bilateral trade agreements on agriculture

and food sectors

Säätytalo 16.12.2016

Aulikki Hulmi

Ministry of Agriculture and Forestry

16.12.2016 2

Agriculture is a key part of EU trade policy

and trade policy is an important part of CAP

• Agri-food trade 7% of EU trade value, but 25% of

positive trade balance; EU is net exporter since 2010

• EU is the world top exporter and importer of agri-food

products

• Trade has direct effect on market prices

• Stabilizing of imports and exports as a means to

address market volatility is essential to reaching

objectives of the CAP

• Trade concerns food security, safety and values of

consumers

Understanding the big picture of

trade agreements?

• Commission Cumulative economic impact report is a

good contribution, but it is important to take into

account the limitations:

• No attention to:

– Tariff Rate Quotas

– Changes in non-tariff measures

– Agreement with Ukraina

• Further understanding needeed:

– Regional effects

– Adjustment of European agriculture

16.12.2016 3

TTIP case study reflecting impacts of

essential agreement

• TTIP is especially important also for agriculture:

– USA is a major agri-food producer and major

market for high quality EU products

– Reconciliation of differing regulatory approaches

• Luke and VATT report is an important effort to model:

– Role of NTMs compared to just tariff removal

– Reflect regional implications

16.12.2016 4

European Agriculture needs defence

• Some sectors are more sensitive than others: Tariff

Rate Quotas are and will be necessary to balance

trade flows

• CAP measures applicable to balance effects of trade

deals

• Special attention for regions with less favourable

production conditions

16.12.2016 5

European consumers deserve safety

and knowledge

• Most non trade ”barriers” in agriculture are a result of

determined policy to guarantee food safety

• Precautionary principle is a valid consept of

international trade

• Significant amount of consumers care about

environment and animal welfare

-> Consumers have right to know where and how food

is produced

16.12.2016 6

Exploit new food export markets for

EU products

• Trade agreements open potential for competitive

European food products

• Finland is determined to get own share, government

program: improve food trade balance by 500 m €

• Food from Finland –export program and investment

to meet export requirements

• Commissioner Hogan’s trade missions a good way to

get visibility for European food

• EU export promotion programs to be developed to be

more easily and equally accessible

16.12.2016 7

Glance at future

• Value chains make the picture more complicated –

benefits for Finnish food production?

• Agenda 2030, SDGs

• Climate

16.12.2016 8

Thank you!

16.12.2016 9