Over the years, the Common Agricultural Policy (CAP) has become more market-oriented and the share of market support in the CAP budget has gone down. At the same time, to strengthen the position of farmers in the food chain, calls for intervention in B2B relations have increased, including calls for more market transparency. The EU institutions have launched EU Market Observatories, the initiative on price transparency and ‘Food Euro’ calculations.
FoodDrinkEurope priorities for modernising and simplifying the CAP
FoodDrinkEurope and its European food and drink industry members regret, but respect, the choice of the citizens of the UK to leave the EU. As a consequence of the Brexit referendum, both the UK and the EU27 are facing an unprecedented and challenging situation, and a considerable level of uncertainty. On 29 March 2017, the formal two-year negotiation period starts in which both parties will have to negotiate the exit conditions; comprehensive transitional arrangements should also be negotiated as early as possible, as well as an ambitious and balanced future EU27-UK agreement. Prolonged uncertainty must be avoided at all costs.
Food and drink exports to non-EU countries have almost doubled over the past decade to reach €91 billion in 2014. Thanks to steady export growth since 2009 the industry registered last year a trade surplus of €25 billion. Despite this strong track record, access to third country markets remains constrained by trade barriers and the decline of market share in foreign markets is a matter of concern. In the face of increased competition from new and established competitors, EU market share in global food and drink exports has declined from 20% in 2003 to 18% in 2013.