|Paris, 17 December 2015
The think-tank Momagri is asking Jean-Claude Juncker to make a stand concerning USDA’s1 study on TTIP that gives American Agriculture the advantage
Following a study conducted by the US Department of Agriculture, the think tank momagri has sent a letter to Jean-Claude Juncker, President of the European Commission, to ask him how it is still possible to claim that the TTIP will safeguard the interests of European agriculture.
In fact, this study examines two scenarios that range from the removal of customs duties to the elimination of non-tariff measures.
The conclusion of the American authorities corroborates the concerns of the European agricultural community: The outcome of such a partnership would be very positive for the United States, and substantially less auspicious––or even negative––for the European Union.
In the case of the first scenario––an agreement limited to the removal of customs duties––the US exports to the European Union would rise by nearly $5.5 billion, while European gains would only amount to $0.8 billion.
Combined to the elimination of non-tariff measures, the second scenario even increases the US benefits, which, according to various estimates, would amount to $9.6 billion, against $2 billion for the European Union.
In other words, when the Europeans gain one dollar, the Americans get five dollars.
In addition, we must call attention to the assumption stating that European agricultural prices would experience downward pressure, while American prices would be supported upward.
What’s more, the Farm Bill is an agricultural policy that is coupled to production and provides its farmers with a minimum income, which is definitely no longer true of the CAP.
The think-tank momagri is asking the European Commission to make a stand concerning a study that is highly troublesome for European agriculture.
Either the European Commission is able to support the findings of the US Department of Agriculture study, or the European Commission has the duty to bring the negotiations on agriculture to a halt in order to prevent undermining one of the EU strategic assets, that is to say its agriculture as cornerstone of its food independence.
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1 US Department of Agriculture, Agriculture in the Transatlantinc Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures.