June 26,2003

Statements from U.S. Senator Max Baucus and Charles Grassley Regarding European Union provisional Common Agricultural Policy reform

Statements from U.S. Senator Max Baucus and Charles GrassleyRegarding European Union provisional Common Agricultural Policy reformU.S. Senators Max Baucus and Chuck Grassley today issued the following statements regarding theEU's proposed reform of its Common Agricultural Policy:

Senator Baucus:

“I am pleased that the European Union recognizes the need for reform of its Common AgriculturalPolicy (CAP). Reform is long overdue. I am still reviewing the details, but this plan clearly doesnot appear to go as far as it should. Some basic reforms - such as movement towards fullde-coupling of subsidies and production - could constitute a good first step. Of course, the key willbe whether the reform plan gives their negotiators the necessary flexibility to agree to real andserious reform within the Doha Round talks. Anything less than that will, ultimately, beinsufficient.”

Senator Grassley:

"A step by the EU on agricultural reform is better than no step at all. I look forward to examiningfurther what is being presented by the EU as a major restructuring of its agricultural policies. Butthe devil can be in the details, including the exceptions and flexible implementing provisions. I hopethat the EU’s reforms are substantial enough to permit the EU to commit to real progress at Cancun.The United States has been, and remains, ready to negotiate real agricultural reforms at the WTO."