Common agricultural policy statement

This is an extract from a debate in the House of Commons.

Tony Baldry (Banbury): At present, every cow in Europe receives about $2 a day in subsidy; what will be the subsidy for each cow following the agreement? What in the deal is less trade distorting, and what will give developing countries an incentive at Cancun to sign up to the Government's agenda on new issues and to the general agreement on trade in services? Unless we can deliver on agricultural reform, there is no incentive for developing countries to sign up to the developed world's agenda at the World Trade Organisation conference. Unless we can secure a significant reduction in subsidies for such things as EU cows, there is no reason why the developing world should co-operate with the World Trade Organisation.

Margaret Beckett: First, it will soon be impossible to answer the hon. Gentleman's question about the average subsidy per cow in the European Union, because once payment is no longer linked to production, it will not be as relevant. It will be for the individual farmer to decide how to optimise market opportunities and what that means for the balance of livestock. The hon. Member for Brecon and Radnorshire (Mr. Williams) raised the issue of abandonment—he asked so many questions that I fear I may not have answered that one. We are all conscious of the fact that, once payments are decoupled from production levels, the question of abandonment may arise in some areas of some member states. However, we believe that the flexibilities allowed through the national envelope will enable countries, including ourselves, to address that problem if need be.