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European farm ministers have ended three weeks of negotiations with a deal which they claim represents genuine reform of the common agricultural policy (CAP). Will it be enough to kick off the Doha world trade negotiations
On the face of it, the deal agreed in the early hours of Thursday June 26th looks promising. Most subsidies linked to specific farm products are, at last, to be broken--the idea is to replace these with a direct payment to farmers, .unconnected to particular products. Support prices for several key products, including milk and butter, are to be cut-that should mean European prices eventually falling towards the world market level. Cut-ting the link between subsidy and production was the main objective of proposals put forward by Mr. Fischler, which had formed the starting point for the negotiations.
The CAP is hugely unpopular around the world. It subsidizes European farmers to such an extent that they can undercut farmers from poor countries, w
A. European farm ministers finally reached a consensus.
B. the link between farm products and subsidies is removed.
C. farmers would definitely accept the direct payment to them.
D. European farm products will reach a lower price level than the world.