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COA Meeting start date 09/03/2016
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New Zealand welcomes ongoing efforts by the European Union to adopt more market-focussed agriculture policies through reform of the CAP. In this regard, New Zealand recalls that at the September 2015 Committee on Agriculture meeting, New Zealand sought information on the design and implementation at both EU and member State level of the European Union's comprehensive dairy support package announced in September 2015.

a. New Zealand would appreciate any further information the European Union is able to provide as to the allocation of this funding, noting that Commission Delegated Regulation (EU) 2015/1853 required Member States to notify the Commission without delay and no later than 31 December 2015 of the objective criteria used to determine the methods for granting targeted support and the measures taken to avoid distortion of competition.

b. Against the background of weak global dairy demand and low prices which are affecting farmers across the world, New Zealand further notes that the Commission invited proposals from member States by 25 February 2016 for additional market support measures in light of the continuing difficulties facing the sector. Consistent with the direction and objectives of its agricultural reform programme, New Zealand once again urges the European Union, when considering any further measures, to avoid approaches that distort production and/or trade in favour of measures to address real financial hardship.

New Zealand would welcomes any further comment from the European Union on how it intends to ensure that any further measures do not distort production and/or trade.
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Answer Full Text

a) The European Union thanks New Zealand for showing interest in the ongoing discussion on the situation facing dairy producers worldwide, and its recognition of the market orientation of the CAP.

According to information available, 52% of the funds under Commission Delegated Regulation (EU) 2015/1853 were distributed for the milk sector; the rest has been allocated to the pig meat sector, the beef sector or for measures applicable to all livestock sectors.

In most cases, member States (23) are granting targeted aid in the form of payments per production unit (farm, number of animals, production volumes, or a combination of these). A few member States have opted for other measures to support livestock sectors, such as advisory services on financial aspects of farm business, measures to reduce structural costs, measures to alleviate the cash flow of the most vulnerable farms, measures to relieve the financial burden or reduce social security contributions, measures for keeping cows in pasture, feed analysis, animal health, farm relocation, chain quality system, producer organisations and manure processing.

For more info see: http://ec.europa.eu/agriculture/newsroom/231_en.htm

b) The European Union has taken note of New Zealand's position. At the 14 March Council meeting, EU Agriculture Ministers will discuss proposals which have been forwarded on possible measures to address the current difficulties which farmers are faced with, including financially. The European Union will of course respect all its international obligations.

Follow-up comments
New Zealand thanked the European Union for responses on how it intended to ensure that any further support to its dairy sector did not distort production or trade. While New Zealand understood that these new measures would be within European Union's WTO commitments, New Zealand was concerned about the amount of CAP support provided. Specifically, with an estimate of EUR 40 billion in revenue transfers which accounted for 42% of dairy farm incomes, New Zealand found it difficult to envisage that CAP had no distortive impacts.
AGCD To Complete
Keywords
Collapse Market accessMarket access
Collapse Tariff and other quotasTariff and other quotas
Transparency issues
Tariff quota fill
Product/tariff line coverage
Country-specific allocation
Allocation of licences to importing entities
Period of importation and licence validity
Other administration arrangements
ST Annex 5
Autonomous tariff quota access
Other
Collapse SSGSSG
Transparency issues
Trigger calculations
Perishable and seasonal products
Other implementation issues
Link with TRQ commitments
Other
Collapse Other import policiesOther import policies
Scheduled tariff commitments including tariff renegotiations
Import licensing
Import prohibitions and restrictions (including quantitative restrictions)
Minimum import/reference prices
State trading enterprises
SPS and TBT
Other
Collapse Domestic supportDomestic support
Collapse Transparency issues (including Table DS:2)Transparency issues (including Table DS:2)
Transparency issues (including Table DS:2)
Collapse Annex 2 (Green Box)Annex 2 (Green Box)
General services: research
General services: pest and disease control
General services: training services
General services: extension and advisory services
General services: inspection services
General services: marketing and promotion services
General services: infrastructural services
General services: other
Public stockholding for food security purposes
Domestic food aid
Direct payments: decoupled income support
Direct payments: income insurance and income safety-net programmes
Direct payments: payments for relief from natural disasters
Direct payments: structural adjustment assistance provided through producer retirement programmes
Direct payments: structural adjustment assistance provided through resource retirement programmes
Direct payments: structural adjustment assistance provided through investment aids
Direct payments: payments under environmental programmes
Direct payments: payments under regional assistance programmes
Direct payments: other
Other
Collapse Article 6.2 (Special and Differential Treatment / Development Programmes)Article 6.2 (Special and Differential Treatment / Development Programmes)
Investment subsidies generally available to agriculture
Input subsidies available to low-income or resource-poor producers
Support to encourage diversification from growing illicit narcotic crops
Other
Collapse Article 6.5 (Blue Box)Article 6.5 (Blue Box)
Payments based on fixed areas or yields
Payments based on 85 per cent or less of the base level of production
Livestock payments made on a fixed number of head
Other
Collapse Current Total AMS (Amber Box)Current Total AMS (Amber Box)
Scheduled commitment level
Constituent data and methodology (AGST)
Market price support
Market price support: Eligible production
Other product-specific AMS/EMS
Non-product-specific AMS
Negative support amounts
De minimis
Excessive rates of inflation
Other
Collapse Classification of measuresClassification of measures
Classification of measures
Collapse Export competitionExport competition
Collapse Export subsidies subject to reduction commitments (Article 9.1)Export subsidies subject to reduction commitments (Article 9.1)
Transparency issues
Product coverage/scheduled commitments
Incorporated products
Special and differential treatment (Article 9.4)
Government involvement
Downstream flexibilities (Article 9.2)
Other
Collapse Circumvention of commitmentsCircumvention of commitments
Unscheduled export subsidies
Export credits, export credit guarantees, insurance programmes
International food aid
State trading enterprises
Other measures with circumvention potential
Quantity of total exports
Other
Collapse Export restrictions and prohibitionsExport restrictions and prohibitions
Collapse Transparency issuesTransparency issues
Timely notification
Special and differential treatment
Provision of information justifying the measure
Other
Collapse Importing Members' food securityImporting Members' food security
Importing Members' food security
Collapse ConsultationsConsultations
Consultations
Collapse NFIDCNFIDC
Collapse Quantity and concessionality of food aidQuantity and concessionality of food aid
Quantity and concessionality of food aid
Collapse Other forms of assistanceOther forms of assistance
Other forms of assistance
Product Categories
All agricultural products
Collapse Live animalsLive animals
Bovine
Swine
Sheep and goat
Poultry
Horses
Other
Collapse MeatMeat
Bovine
Swine
Sheep and goat
Poultry
Horses
Other
Collapse <b><b><b><b><b>Dairy</b></b></b></b></b>Dairy
Milk
Milk powders
Butter
Cheese
Other
Collapse Other animal productsOther animal products
Eggs
Hair, Shells, bones, etc.
hides and Skins
Other
Collapse Fruit and VegetablesFruit and Vegetables
Fresh vegetables
Processed vegetables
Roots and tubers
Fruit
Nuts
Processed fruit or nuts
Fruit and vegetable beverages
Collapse Coffee, tea, spicesCoffee, tea, spices
Coffee
Tea
Mate
Spices
Collapse CerealsCereals
Wheat
Corn
Rice
Malt
Coarse grains
Collapse Starches, inulin, gumStarches, inulin, gum
Wheat
Corn
Processed vegetables
Roots and tubers
Other
Collapse Oil seeds, fats and oilsOil seeds, fats and oils
Seeds
Vegetable oils and fats
Fats/Oils of animal origin
Other fats and oils
Collapse Residues of processing industryResidues of processing industry
Wheat
Corn
Animal feed
Alcohol residues
Oilcakes and solid residues
Other residues
Collapse Plants and vegetal materialPlants and vegetal material
Live trees and plants
Cut flowers
Animal feed
Gums, saps and resins
Seeds
Medicinal/perfumery plants
Sugar
Other
Collapse SugarSugar
Cane or beet sugar
Other
Collapse CocoaCocoa
Cocoa beans/powder/butter
Other
Collapse Food preparationsFood preparations
Cereal
Oils
Coffee
Tea
Other
Collapse BeveragesBeverages
Waters
Alcoholic
Other
Collapse TobaccoTobacco
Tobacco
Cigars, Cigarettes
Other
Essential oils, fatty acids and alcohols and other chemicals
Collapse FibresFibres
Cotton
Silk
Wool
Other
Collapse non-Annex 1 productsnon-Annex 1 products
non-Annex 1 products
Dairy,Milk,Milk powders,Butter,Cheese,Other
Question Summary
European Union’s dairy policies
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