CAP REFORM: good, but market distortions may remain

3.49.04pm BST (GMT +0100) Fri 27th Jun 2003

Commenting on the agreement by the European Council on reform of the Common Agricultural Policy, West Midlands Euro-MP Liz Lynne said:

"The Council's agreement is a bit of a mixed bag. I welcome the fact that EU Member States will be able to completely decouple payments to farms from production, but I am troubled that Member States will also be free to continue with the same market-distorting production-based subsidies of the past 45 years.

"The truth is, the agriculture ministers agreed to disagree and have stretched the definition of the word 'common' to breaking point. Despite reassurances, I am concerned that this may put countries that introduce reforms at a competitive disadvantage and would urge the European Commission to ensure this does not happen.

"However, despite my misgivings, there is no getting away from the fact that this is a historical achievement and a major step in the right direction. I only hope that the combined pressure of other EU Member States and the World Trade Organisation will convince the anti-reform countries to change their minds as quickly as possible."