June 12,2003

Grassley Opposes Step to Stall Liberalization of Agricultural Trade

M E M O R A N D U M

To: Reporters and Editors
Re: EU’s Common Agricultural Policy
Da: Thursday, June 12, 2003

Sen. Chuck Grassley, chairman of the Committee on Finance, today expressed concernsregarding reports that France and Germany have agreed to work together to prevent major changesin the Common Agricultural Policy (CAP) of the European Union. The agreement between Franceand Germany was reached this week at CAP reform negotiations in Luxembourg. Grassley madethe following comment on the new alliance.

“I’m very disappointed by press reports that France and Germany this week agreed to allywith one another to block substantial reforms of the EU’s Common Agricultural Policy. The EU’scurrent policies put producers in other countries, including those in the United States, at a significantdisadvantage in the international market. Without the adoption of a more market-oriented approachby the EU, it will be much more difficult to succeed in further liberalization of agricultural trade atthe WTO. And if WTO talks don’t result in increased liberalization, the whole world will suffer.I hope France and Germany will reconsider their positions and ultimately agree to major changes inthe CAP.”