Joining The E.E.C. (5) Radical Changes Face U.K. Agriculture

Press, Volume CI, Issue 29908, 23 August 1962, Page 17

Joining The E.E.C. (5) Radical Changes Face U.K. Agriculture

(By a Staff Correspondent)

The agricultural provisions of the Treaty of Rome are of particular interest to New Zealand. They are complex and to some extent conflicting, reflecting the various systems which evolved in each of the six member countries of “protecting the vital interests of agriculture” <or buying the farm vote).

From the non-member’s point of view these provisions are highly restrictive. Generally, they aim at maintaining internal prices above world prices by eliminating or reducing competition from imports. Import duties may be raised at short notice to discourage imports, and most imports of agricultural products are subject to annual quotas.

Both the present national systems in operation in the E.E.C. and the proposed common agricultural policy differ radically from the British agricultural policy. The essence of the British system is to place no restrictions on imports and to subsidise the British farmer directly. Britain has for many years been the largest free market in the world for agricultural products. Her food imports are drawn mainly from efficient. low-cost producers and. to a lesser extent, from high-cost producers, some of which dump their surpluses in Britain. As a result of this competition from imports. the prices of most

British' farm products are usually below those guaranteed by the United Kingdom Government, which meets the difference. The cost of the British farm guarantees, now around £3OO million a year, averaged in one recent year about £lOOO a farm. This system will have to be abandoned if Britain enters the E.E.C. Britain will then be committed to the adopting—possibly progressively over several years—the E.E.C. policy of high food prices accompanied by import controls. Commodity Prices “The impact of membership of E.E.C. on British farmers—and on British food prices—would be governed largely by the liberalism or otherwise of Community policy, and by the prices levels therefore established.” said “The Times” in a special article last year. In the recent past, the price (deficiency payments in eluded) obtained by British farmers for wheat, barley, potatoes, beef, pigs, and butter has been lower than the average in the E.E.C., though slightly above the French average for barley and beef. British farm prices for eggs and liquid milk have been above the E.E.C. figures. If Britain joins the E.E.C.. most British farmers are not likely to be adversely affected and some might gain, according to the independent English organisation, Political

and Economic Planning. In a paper published last year, P.E.P. said that horticulturists would have to meet keener competition unless imports were restricted by some other means than tariffs.

The P.E.P. paper was strongly criticised by the National Farmers’ Union. ‘The study does not provide any evidence to show that farmers as a whole would be likely to be as well off longterm under the Community's system of wholesale target prices as they are under the I present! system,” the union said.

More recent statements from United Kingdom farmers’ spokesman have been less apprehensive, although the horticulturists' position is still regarded as precarious if Britain enters the EEC. under its present provisions. The recent decision of the E.E.C. to institute annual reviews of agriculture, along the British lines, has helped to allay British farmers’ fears. (To be continued)