The new promotion policy Political agreement 1 st APRIL 2014 DG Agriculture and Rural Development European Commission PPA(14)4669

Planning - Promotion policy reform process 2 14 July 2011 – January 2012 Green Paper – Public debate External evaluation of the current regime Commission Communication 30 March November 2013 Legal proposal on the promotion policy Discussions in the European Parliament and the Council 1 Avril 2014 Political Agreement on the NEW Promotion policy between European Parliament, Council and Commission Finalisation of the legislative phase December 2015 Entry into force Approval of Delegated and Implementing Acts Delegation to the Executive agency in Luxembourg

How will the future promotion policy address those challenges 3 Cost pressure Fierce competition Lack of awareness Policy objectives Enhance competitiveness of agricultural sector Increasing awareness about merits of EU agri. products Developing and opening up new markets Greater efficiency and effectiveness Policy objectives Reform objectives Challenges

What's new in the reform to meet the objectives? 4 Enlarge to new beneficiaries Wider list of eligible products including processed products Recognition of the strategic importance of brands and origin Reactive in case of crisis Technical support services Clear priorities established annually - work programme Increase the promotion campaigns in third-country market Enhance the cooperation between operators from different MS through multi programmes Incentive EU cofinancing rates New selection process with gain in time and evaluation exclusively at Commission level through external experts End-up of national cofinancing Simplification of administrative procedure for Multi-programmes : directly managed by the Commission Delegation to an executive agency foreseen Align with needs of the sector Targeted on EU added value Greater effectiveness Increased expenditure : up to 200M€

a) Eligible products and schemes 5 All agricultural products covered excluding tobacco Open to certain processed products listed in Annex (beer, chocolate, pasta, sweet corn, cotton...) Spirits with a P rotected G eographical I ndication Wine: Simple programmes = Basket approach Multi programmes = Wine alone possible On the internal market = Information on quality schemes + responsible consumption A wider list of eligible products including processed products. Consistent with other CAP promotion measures and EU policy on alcohol consumption Fishery and aquaculture products : Basket approach Schemes : EU quality schemes, organic, RUP, national quality schemes

b) Proposing organisations 6 Trade or inter-trade organisations representative of the sector(s) concerned at MS Trade or inter-trade organisations at EU level Producer organisations Bodies with public service mission in charge of promotion of agricultural products (example: Agence Bio, Chambers of agriculture) Clarification of the status of beneficiaries New beneficiaries coherent with Single CMO post 2013

c) EU generic promotion with recognition of the strategic importance of brands and origin (1/2) 7 VISIBILITY OF BRANDS Each brand equally visible Graphic presentation smaller format than the main European EU message of the campaign In general, several brands displayed

Brands : example for poster Banner with several brands under the main message 8

Brands : example for web-site Rolling banner with several brands under an EU message 9

Brands : example for a stand Individual but identical corner for each representative of brands Same size of the names of the brands – under an EU message 10

c) EU generic promotion with recognition of the strategic importance of brands and origin (2/2) 11 MENTION OF ORIGIN Internal market : always secondary in relation to the main EU message of the campaign Third country market may be on the same level as the main EU message of the campaign Products recognised under EU quality schemes (PDO, PGI...) : the origin as registered in the denomination may be mentioned without any restriction

Not acceptable: programmes which encourage or give preference to the purchase of domestic products Article 34 TFUE Case 249/81 Commission v Ireland [1982] ECR

Example: origin on Internal market 13

Example: third countries 14

Example Internal Market : PDO/PGI/STG 15

d) Different types of actions 16 Information and promotion programmes : 1 to 3 years Submitted by proposing organisations (PO) SIMPLE programmes : one or more PO from the same MS MULTI programmes : several POs from several MS + EU organisations Commission initiatives : Information and promotion measures :  High-level missions  Participation in trade fairs  Own campaigns Technical support services

New technical support services offered by the Commission 17 As example : Help proposing organisations to design their programmes and implement them in an effective manner Create a platform for exchanges – generate contacts between proposing organisations (e.g. interest in carrying out a multi programme) Organising trainings, conferences to exchange views and methodology Help operators to develop their export activities

e) Which measures in case of crisis ? 18 Information and promotion cofinanced programmes Programmes running 2 or 3 years Need time to be elaborated adequately Crisis situation taken into account in the annual work programme Priority points for the selection Possibility to precise an indicative amount by priority Higher cofinancing rate : 85 % Exceptional measures (sCMO Regulation (UE) n°1308/2013) for the sectors concerned Information measures (art 45 Regulation (UE) n°1306/2013): direct communication from the Commission Commission's own initiatives : information and promotion campaigns Targeted on short term Targeted on long term CAP offers complementary tools

f) New selection procedures 19 Programme directly submitted to European Commission 1 selection per year based on priorities established in annual work programme Implementation adapted to the specificities of simple-multi programmes CALLS FOR PROPOSALS Published by Commission SIMPLE MEMBER-STATES Shared management WORK PROGRAMME Adopted by Commission Implementing act Examination procedure SIMPLE SUBMISSION of programmes proposals BY proposing organisations TO Commission MULTI SELECTION By Commission MULTI COMMISSION Direct management Implementing act Examination procedure Grants agreements No national cofinancing anymore

g) Cofinancing rates 20 Type of programmes SimpleMulti Internal market70%80% External market80% In case of crisis85% National cofinancing + 5% for MS under financial assistance EU cofinancing rates :

Next steps 21 Finalisation of the legislative stage Legal and linguistic finalisation Formal approval of the basic act Executive Agency Commission Decision needed to amend the mandate of CHAFEA Integrating promotion into the existing EA Delegated & implementing acts New rules to be prepared Annual work programme to be prepared

22 1 April th Quarter 2014 Oct/ Nov 2014 Summer December 2015 Tentative calendar for the NEW Promotion policy Summer 2015

For further information Europa web-site 23 Thank you

Annual work programme 24 Set the strategic priorities : 1- Based on profound analysis of market opportunities, FTA's negotiations To respond to specific sector needs 3- To support actions with higher impacts for SMEs 4- Provide for specific arrangements to react in case of crisis

Annual work programme 25 Set the minimum requirements on key messages : e.g. Common signature

Annual work programme : in practice (1/2) 26  Actions defined under thematic priorities set in the basic act increasing awareness about the merits of EU agricultural products and the high standards applicable to the production methods in the EU; increasing the competitiveness and consumption of EU agricultural products and certain food products and raise their profile both within and outside the Union; increasing awareness and recognition of Union quality schemes; increasing the market share of EU agricultural products and certain food products, with a specific focus on those markets in third countries with the highest growth potential; restoring normal market conditions in the event of a serious market disturbance, loss of consumer confidence or other specific problems.  Indicative amounts dedicated by actions

Annual work programme : in practice (2/2) 27 Year (n-1) Year n Collection of inputs : Trade data Sectorial inputs Opinion of Committee for CMO Draft annual work programme Adoption annually through an implementing act