Seminar: Effects of the EU bilateral trade agreements on agriculture and food sectors, Säätytalo 16.12.2016 Mrs Aulikki Hulmi, Director for International Affairs, Ministry of Agriculture and Forestry

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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

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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

3. 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
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4. 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
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5. 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
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6. 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
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7. 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 accessible16.12.2016 7

8. Glance at future
• Value chains make the picture more complicated –
benefits for Finnish food production?
• Agenda 2030, SDGs
• Climate
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9. Thank you!
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