Multi-beneficiary workshop on the reform of the Common Agriculture Policy of the EU (CAP) Common Market Organisation Regulations 1308/2013 and 1370/2013 DG Agriculture and Rural Development European Commission

Introducing… …the C ommon M arket O rganisation! Origins of the "Single CMO" What happened in the Common Agriculture Policy reform of 2013 What next ? 2

CAP OVERALL STRUCTURE 3 Direct payments Single CMO Rural development 4 MAIN REGULATIONS First pillarSecond pillar Horizontal financing Regulation

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What is a Common Market Organisation ? Internal market Price support Special intervention measures Quota schemes Marketing standards Producer organisations Aid schemes Trade Licences (import/ export) TRQsExport refundsImport duties Competition State aid 5 CMO = legal framework established at EU level for certain agricultural products First established in 1962 for cereals !

Creating the single CMO ! Single CMO (R 1234/2007) Pigmeat CMO Cereals CMO Milk products CMO 6 Wine sector Fruit & Vegetables …in 2008 Other Regulations (eg apiculture) 21 different CMOs …full integration of reforms in the…

A single CMO… What for ? 7 Between different sectors Coherence For operators For national administrations Simplification For future reforms Efficiency

8 sCMO Regulation 1234/2007 Market support Exceptional measures Carcass classification Production limitation systems Aid schemesCompetitionState aid Trade mechanisms Marketing standards Wine Milk, wine, sugar F&V, wine, olive oil, apiculture Public intervention / Private storage Licences, TRQs, export refunds Market disturbance, emergency Labelling, oenological practices Beef, pigmeat, sheep (optional) 10 Reg/ eg hops, eggs, bananas

Adapting the CAP… …the outcome of the 2013 reform 9

CAP REFORM Submission of proposal by European Commission October 2011 Political agreement reached 26 June 2013 Publication of new regulations CMO Regulation – 1308/2013 "Fixing" Regulation – 1370/ December 2013 First CAP reform under ordinary legislative procedure

11 Direct payments CMO Rural develop- ment TFEU Article 43(3) "Fixing" Regulation TFEU Article 43(2) Legal base: First pillar Second pillar CAP REFORM 2013 Horizontal financing regulation TFEU Article 43(2)

MAIN CHANGES IN NEW CMO REG. (1/4) IMPROVED MARKET ORIENTATION 12 Liberalising production and ending quotas End of sugar quotas in 2017 End of milk quotas in 2015 Vine planting rights abolished in 2015 (to be replaced by new vines authorizations) Adjustment of market support measures Exclusion of sorghum from public intervention Abolition of mandatory PSA for butter Deletion of certain aids for silkworms and for the use of skimmed milk powder in animal feed

MAIN CHANGES IN NEW CMO REG. (2/4) STRENGTHENING THE SAFETY NET 13 More responsive market measures Automatic tendering for skimmed milk powder and butter above fixed quantities. More flexible triggering conditions for optional private storage aid; Updated, more flexible exceptional measures Possibility to react to threats of market disturbance in any sector via urgency protocol if necessary; Measures against loss of consumer confidence in all main sectors; Emergency clause to "adopt necessary and justifiable emergency measures to resolve specific problems"; Commission power to authorise stabilising collective measures by POs and IBOs.

MAIN CHANGES IN NEW CMO REG. (3/4) IMPROVING PRODUCER COOPERATION 14 Producer organisations Provides greater legal certainty for producer cooperation Collective negotiation by POs for the supply of olive oil, beef and cereals and certain other arable crops Continuation of sugar sector agreements and contracts after end of quotas in Other possibilities for Member States Regulate the supply of ham covered by a PDO or PGI, at the request of producers Introduce possibility for mandatory written delivery contracts for all sectors

15 Modernising aid schemes Fruit & vegetables Wine Apiculture School Milk Scheme School Fruit Scheme: Increase of funds to 150m Increased EU co- financing Eligibility of accompanying measures MAIN CHANGES IN NEW CMO REG. (4/4) OTHER CHANGES Creating single sets of rules for Competition State aid …covering all agricultural products Potatoes Horsemeat Cork …and many more!

WHAT NEXT? IMPLEMENTING THE REFORM 16 Private storage aid Eligibility conditions for flax fibre, SMP and cheese with a PDO/PGI School fruit scheme Eligibility conditions for educational measures that can now be part- financed Fruit and vegetables Provisions on APOs managing operational programme Grubbing-up of orchards, Clarificatio ns relating to recognition of POs and entry price provisions Wine national support schemes Provisions on promotion on internal market, innovation and grubbing -up of vineyards. Olive oil aid New measure relating to improvement of competitive- ness and deletion of the concept of "operator organisation. School milk schemes Member States' strategy R. 501/2014R. 500/2014 R. 499/2014 So far… Six new delegated acts ! R. 612/2014R. 1047/2014 R. 611/2014

WHAT NEXT ? The CAP Budget The measures in response to the Russian embargo Updating CMO Regulations 17

APPLYING THE MARKET SUPPORT MEASURES: RESPONDING TO THE RUSSIAN EMBARGO Safety net with improved conditions for withdrawal, green harvesting, and non-harvesting operations More targeted measure, taking into consideration exported quantities to Russia, covering withdrawal, green harvesting, and non-harvesting operations. Fruit and Vegetables Specific private storage aid scheme for certain cheeses Private storate aid scheme for butter and skimmed milk powder (Article 17 CMO) Extension of the public intervention buying-in period for butter and SMP until end Dairy 18 Base : Article 219 CMO Crisis provisions have worked, additional experience to be gained.

SIMPLIFICATION OF THE CMO COMMISSION REGULATIONS alignment of Commission implementing regulations with empowerments in new CMO Reg.1308/2013 (Currently) over 200 acts with base in CMO – 200 x 2 = 400 acts (!!!) Identification of obsolete acts (around 30) [OJ C417 of 21 November 2014] Design of an open working method 19 The legal necessity The problem The solutions CMO Task Force

Simplification Coherence "Error rate" Administrative burden 20 Priority for new Commission Important for Member States Identify best practice and replicate it across CMO Risk of payment error is a major concern on CMO schemes: rules on eligibility should be clearly drafted Reducing the burden, especially for instruments used less often. DRIVERS of the task force

THE TASKFORCE WORKING METHOD 21 Drafting of delegated and implementing provisions Issues paper Workshop

Main issues for 2014 and Fruit and vegetables (Commission Regulation 543/2011) Public intervention (1272/2009) Private storage aid (826/2008) Trade mechanisms (licences, TRQs, export refunds) Wine support programmes (555/2008) Carcass classification (1249/2008) Apiculture programmes (917/2004) Dairy notifications (479/2010) Poultry-meat marketing standards (543/2008) School fruit (288/2009) School milk (657/2008) Sugar quota (967/2006)

Thank you for your attention, any questions? 23 Robin Manning Unit C.1 – General aspects of agricultural markets European Commission DG Agriculture and Rural Development