International Egg and Poultry Review - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at the EU's Draft agriculture budget for 2005, USDA Amends Import Regulations for Birds and Poultry from Regions with Highly Pathogenic Avian Influenza and Saudi Arabia Closer to WTO Accession.

Commission presents draft EU agriculture budget for 2005

The European Commission has presented its draft budget for the 2005 year. The total budget projects spending of €109.5 billion (bn), of which €50.7 bn is for agriculture. This compares to a total 2004 budget which is expected to be €99.8 bn in total, of which €46.8 bn was allocated to agriculture.

The two main increases in agricultural spending of €3.9 bn are the costs of the 2003 CAP reform which add €1.3 bn, although Commission officials are reported as saying the bulk of this increase is due to payments to the NMS (new member states). The other main increase, €1.4 bn is for the first year of direct payments in the NMS. It should be noted that these are currently only 25% of the level paid in the EU-15, gradually rising to 100% by 2013.

Preliminary Draft 2005 Budget – Proposed Agricultural Spending
Millions EUR	2004	2005	Change
Milk	2,959	3,901	942
Beef and Veal	8,054	8,088	34
Sheepmeat	1,530	1,840	310
Pigmeat/Eggs/Poultry	175	197	22

The EU executive commission proposed abolishing agricultural export subsidies on the condition that key trading partners also reduce financial support for exports. The EU and the US have backed the elimination of export subsidies in principal, but they have disagreed on the details of ending government support for agriculture.

The EU's chief agriculture negotiator said the Union realized export subsidy elimination was one of the key issues for a number of countries and would have to be addressed before the Doha Round could move forward. Other WTO members countries need to address the use of export credits, food aid and state trading enterprises.

Representatives of some EU member states said the Commission would need their approval before making any concessions on ending export subsidies.
Source: BRIDGES Weekly News Trade Digest, USDA/FAS, various news wires.

USDA Amends Import Regulations for Birds and Poultry from Regions with Highly Pathogenic Avian Influenza

On Mary 10 the USDA’s Animal and Plant Health Inspection Service announced it was amending the regulations concerning the importation of animals and animal products to prohibit or restrict the importation of birds, poultry, and unprocessed bird and poultry products from regions that have reported the presence of the H5N1 subtype of highly pathogenic avian influenza and to establish additional permit and quarantine requirements for U.S. origin pet birds and performing or theatrical birds and poultry returning to the United States.

This action is necessary to prevent the introduction of highly pathogenic avian influenza subtype H5N1 into the United States. February 4, 2004. We will consider all comments that we receive on or before July 9, 2004.
Source: Federal Register/Vol. 69, No. 90/Monday, May 10, 2004/ Rules and Regulations, USDA/APHIS press release

Saudi Arabia Closer to WTO Accession

Following a round of accession talks in Geneva, Saudi Arabia — the world’s largest oil exporter — said on 29 April that it hoped to finalize negotiations to join the WTO by mid-June this year. “Roughly, we hope to join the WTO before the end of 2004,” noted Saudi Arabian Deputy Trade and Industry Minister, Fawaz al-Alamy. Saudi Arabia must fulfill two conditions before it can join the WTO: its commercial laws must be adapted to WTO rules; and it must conclude bilateral accords with any Member that demands an agreement.

Earlier this month, Saudi Arabia had signed a bilateral agreement with China, bringing the total number of such accords to 31. The timing of its accession, however, still depends on its ability to reach bilateral deals with the US, Indonesia, Panama and the Philippines. The US warned that the mid-June target might be a “bit tight,” as the US still wants to see changes to Saudi Arabia’s financial services sector, intellectual property rights and domestic fuel price discounts, opening up the sectors to competition.

In related news, Lebanon’s WTO accession is moving closer to reality. “On the legislative level, we have an action plan. Most of the laws allowing us to join the WTO are either already in the Parliament in the various committees or on their way to the Parliament,” noted Fadi Makki, Director General of the Lebanese Ministry of Economy and Trade in a 28 April speech. He added that “The third round of negotiations, which will take place in July, is expected to allow Lebanon to join the WTO” by early 2005.

Negotiators are focusing their efforts on certain Lebanese peak tariffs in agricultural and industrial products.
Source: BRIDGES Weekly News Trade Digest

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Source: USDA's Agricultural Marketing Service - 11th May 2004