Tuesday, 25 November 2008

La France Perfide!”

Tuesday, 25 November, 2008 3:11 PM

This is an absolute racket and the British government should - though 
it won’t - merely deduct the “rebates worth £7 billion “ which Blair 
gave up in 2005 in return for the promise of CAP reform from payments 
to Brussels as the other side of the bargain has been betrayed.   “La 
France Perfide!”


And Sarkozy blackmails the rest of the EU with a promise to wreck the 
revived WTO talks - desperately needed in the crisis - unless he gets 
his way

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TELEGRAPH   25.11.08
France demands £7bn farm subsidies before talks begin
EXCLUSIVE: France is preparing to "stitch up" Britain by blackmailing 
the European Union into guaranteeing farm subsidies worth more than 
£7 billion a year.

By Bruno Waterfield in Brussels


Restricted documents seen by The Daily Telegraph, show Paris will 
demand subsidies to French farmers are protected before agreeing to 
allow global free trade talks to take place next month.

The development threatens to break promises made three years ago when 
the former Prime Minister Tony Blair gave up a chunk of Britain's 
annual rebate from Brussels on the understanding there would be a cut 
in farm subsidies after 2013.

The recent meeting of G20 leaders called on the EU to come to a quick 
agreement on World Trade Organisation negotiations aimed at cutting 
farm subsidies and dismantling import barriers.

But diplomats say France, which currently holds the EU's rotating 
presidency, is using its position to hold the EU to ransom by linking 
protection for French farmers to the reopening of talks.

President Sarkozy, who has bitterly attacked plans to cut Europe's 
farm spending "while 800 million people are dying of hunger", has 
summoned EU agriculture ministers to a special meeting on Friday to 
discuss "the future of the Common Agriculture Policy" (CAP).

According to officials and diplomats, France is planning to take the 
issue to a summit of European leaders in 16 days time, even 
threatening to call heads of government back off their Christmas 
holidays on Dec 29 unless agreement is reached.
"It is a pretty transparent attempt to stitch up the CAP so France 
can carry on subsidising food and farms," said one diplomat. "It is 
alarming how much support the French have."

A classified internal French document praises the CAP as a "strategic 
asset" based on principles laid down in the Treaty of Rome over 50 
years ago.
It goes on to urge that it should be continued beyond 2013, the date 
when a new five year EU budget period begins.    "It is necessary for 
the EU to continue to have after 2013 a common and sufficiently 
ambitious agricultural policy," state "draft Council conclusions".

By seeking agreement "on the CAP after 2013", France appears to be 
trying to ring-fence its lion's share of annual EU farm budgets worth 
£42 billion, spending that costs the average British household £322 a 
year.

Jim Paice MP, Conservative spokesman for agriculture and rural 
affairs, said: "When Blair gave up rebates worth £7 billion in 2005 
it was on the basis that there would be substantial reform of the CAP."

British, Dutch and officials from other countries committed to CAP 
reform are particularly concerned that the French paper insists on 
retaining Brussels jargon such as "Community preference" and "market 
stabilisation".
This is wording that will preserve favouritism, price and production 
subsidies for EU farm products over agriculture imports from the 
developing world, trade barriers a new WTO deal aims to end.

Alarm bells have also rung over a demand for the EU to guarantee "the 
wholesomeness of its products for consumers by promoting ambitious 
health standards both inside and outside the Union".

This move and the language used is widely regarded as spelling a new 
form of protectionism that will limit imports by demanding that non-
European food producers in Latin America, Asia or Africa abide by all 
the EU's health, environment, workplace and animal rules before food 
can be exported.

To get the measures through, Mr Sarkozy will need to win over the 
German Chancellor Angela Merkel who he met with yesterday.

In 2002, the former French President Jacques Chirac did a deal with 
Chancellor Merkel's predecessor, Gerhard Schröder to maintain the 
high levels of CAP spending.

Six years later, amid a recession, say diplomats, Germany, the EU 
largest economy and budget contributor, is not enthusiastic about 
guaranteeing subsidies that benefit French farmers