1. 33 rd IPC Plenary Meeting and Seminar May 16-17, 2004 Agricultural Trade Negotiations: Politics and Prospects Jerzy Plewa, Poland

2. Key questions  What influence decision making process concerning negotiating positions?  Who are the main players in this process?  What is a weight of economics and politics?  Are there any other concerns (social, environmental, cultural)?  What leads to mutual agreements and is a “win- win” result possible in multilateral trade negotiations?

3. Simultaneous processes  European enlargement  Reform of the Common Agricultural Policy  WTO negotiations

4. General information on Polish agriculture  The number of agricultural holdings – 1,8 millin  The total area of utilized land – 18.3 million ha  An average farm size – 8.44 ha  The share of agriculture in GDP – 2.7%  The inhabitants of rural areas – 8 504 900 people (38% of total population)

5. Economics of Polish agriculture  PSE (2002) – 14%  Total support for agriculture and rural development in 2002 - 1 billion EURO or 2.7% of total Poland’s budgetary expenditure  „Price squeeze” year 2002 – 65.5 year 2002 – 65.5 year 1990 – 100 year 1990 – 100

6. The adjustment of Polish agriculture to the new conditions  Response to the consumers demands (marketing, public relations, image)  Response to the increased competition (trade balance, price fluctuation)  Response to the legal obligations (certification, adoption of standards)

7. The number of establishments complying with EU requirements and which received transitional periods Branch of industry establishments complying with EU * Establishments which received transitional period. Slaughter and meat processing 1231486 Cold stories 7210 Milk203163 Fishes15362 Total1725721

8. Poland is open for the CAP reforms  Simplification CAP and decoupling is supported by Poland  More focus on rural development – increasing role of II pillar  Environment and landscape protection- in our interest  Preserving biodiversity and multifunctional agriculture - our aspiration  The same treatment of all farmers form the EU 25

9. Concerns of New Member States  extension of the phasing-in mechanism on new direct payments introduced in some sectors, including milk, energy crops  freezing of the milk quotas until 2014 (this is especially important in Poland)

10. CAP reform – General evaluation  changes in the CAP support a multi- functional European agriculture  support dependent on compliance with agro-environment standards  increasing funds for rural development  limiting payments for large, intensive farms  positive effect on international trade conditions and WTO negotiations

11. Impact of enlargement on the EU  Unprecedented scale of the enlargement  The further enlargement which would include Bulgaria and Rumania and in future the Balkan States and probably Turkey  The role and importance of agriculture in the new Member States  The significance of the agricultural sector is increasing in the policy and in the EU-trade negotiations  The amendments of the EU-position in the world trade and trading negotiations ?

12. The WTO negotiations – view from Poland Aim for balanced, comprehensive results which will secure family farming style of European agriculture  Complete agreement, equal share of commitments  Gradual evolution of support for farmers  Inclusion of Non-Trade concerns in the final package

13. This picture of Polish agriculture belongs to the history