FRENCH PRESIDENT SARKOZY ADVOCATES EARLY CAP REFORM,

UNCLAS SECTION 01 OF 02 PARIS 000342 SIPDIS SIPDIS BRUSSELS PASS USEU FOR AGMINCOUNSELOR STATE FOR EBB; OES; EUR/ERA; STATE PASS USTR FOR MURPHY; USDA/OS/SCHAFER/CONNER; USDA/FAS FOR OA/YOST/JACKSON/ROSADO; OCRA/CURTIS/ALEXANDER; ONA/RIEMENSCHNEIDER/YOUNG; OFSO/LEE/YOUNG; EU POSTS PASS TO AGRICULTURE AND ECON GENEVA FOR USTR, ALSO AGRICULTURE E.O. 12958: N/A TAGS: EAGR ETRD PGOV WTRO EUN FR INR SUBJECT: FRENCH PRESIDENT SARKOZY ADVOCATES EARLY CAP REFORM, CRITICIZES WTO DISCUSSION REF: (A) 2007 PARIS 003853 ¶1. Summary: At the opening of the annual Paris Agricultural Show on Saturday February 23, French President Sarkozy gave a major address on agricultural policy announcing his intention to reform the Common Agricultural Policy (CAP) as early as 2009. He also reiterated his opposition to any WTO agreement in which the EU makes concessions on agriculture without measurable concessions by its trading partners. Sarkozy also stated his intention to propose that France's gastronomy be listed on UNESCO's World Heritage list. Initial reactions from French farm groups were generally positive. End Summary. ¶2. President Sarkozy emphasized that the 2008 CAP health check done under the French Presidency should lay the groundwork for a more complete and in-depth reform of the CAP in 2009, rather than wait for the 2010 budget discussion. For France, the CAP should focus on better management of climatic, sanitary and economic risks for farmers while sustaining agricultural activities in fragile areas. ¶3. Sarkozy highlighted his four goals for a CAP reform: - Increased food security for 400 million European consumers. He stressed that strict EU sanitary, environmental and welfare regulations should also apply without restrictions to imported products. Sarkozy also emphasized that the EU preference should be the basis for a new CAP. - An EU presence on world agricultural markets. Sarkozy repeated that European agriculture should help fight hunger in the world. (Note: that could mean that Sarkozy wants to maintain some kind of EU export support program. End note). - A contribution to the fight against global warming and environmental stewardship. - More balanced regional development, with policy tools to help sustain agriculture in fragile areas such as mountainous regions. ¶4. In carefully chosen words, Sarkozy suggested that farmers should organize themselves more effectively as an alternative to calling for systematic subsidies when problems arise. He stated that he will work with the EU commission so that such groups do not contravene EU fair competition rules. ¶5. Sarkozy openly criticized the EU position on current WTO Doha negotiations as unbalanced. He stated that France will strongly oppose any agreement that would hurt French agriculture and reminded the audience that the EU needs unanimity to approve an agreement. He asked that negotiations be reestablished on a "healthy foundation." He cited the United States as strong defendant of its agriculture and called upon the EU to follow the U.S. example. ¶6. Sarkozy mentioned the biotech issue briefly, calling for a more integrated policy within the European Union. Europe must "advance at the same pace" on the issue, he said. (Comment: France is likely to use its upcoming EU presidency to advocate its approach to agricultural bio-technology with EU partners. End comment.) ¶7. Sarkozy also announced that France will propose that French gastronomy be named on the UNESCO's Intangible World Heritage lists where it would join Albanian Folk Iso-polyphony or Japan's Nogaku Theatre. ¶8. French farm leaders received Sarkozy's proposals positively. They acknowledged that current high commodity prices will probably make CAP reform less painful. They however reminded the French President that they will be vigilant on these issues. ¶9. Comment: Sarkozy's proposals were consistent with those made in Rennes on September 11 (Reftel A). Nevertheless, the announcement of a 2009 reform was somewhat surprising, as in the past France had refused to consider CAP reform before 2013. We would expect France to make CAP reform the cornerstone of its agricultural agenda during its EU presidency, with emphasis on giving member states more PARIS 00000342 002 OF 002 resources and flexibility to manage crises and using a wider range of tools such as insurance. France is also likely to propose that imports be subject to more rigorous standards. STAPLETON