US tariffs will hit EU agri-food sector

Professor Alan Matthews examines the likely impact on the EU agri-food sector of 25 per cent tariffs imposed by the United States: http://capreform.eu/trump-ii-tariffs-and-the-eu-agri-food-sector/

It's not good news for the sector which has an overall trading surplus with the US.   Some niche or more up market products may be able to withstand the resultant price hike, but products more to the commodity end of the spectrum will be hit.

The EU doesn't have many options.  The favoured one of retaliation is unlikely to help the sectors that will be most affected.

Could Doha be back on?

India's new government is eager to resume the Doha round of world trade talks, according to the country's new minister for commerce and industry. Anand Sharma told the Financial Times that India was keen to break the impasse in negotiations. Mr Sharma's tone marks a significant shift from his predecessor, Kamal Nath, who was known for his uncomprising stance in the Doha talks.

Many countries blamed India for the breakdown of ministerial talks a year ago intended to forge a blueprint for concluding the Doha round. The meeting ended in disarray after India and the US failed to reach a compromise over the special safeguard mechanism, designed to protect farmers in poor countries from surges of agricultural imports. Washington said imports should have to increase 40 per cent to trigger safeguard tariffs, whereas India wanted a very low 10 per cent trigger.

World trade negotiations have been the most significant driver for CAP reform for nearly two decades and a resumption of them could counter balance strengthening protectionist forces in Europe.