EU reduces subsidies to exporters of meat

Exporters of meat in the European Union say goodbye to the latest subsidies that they received in 1970.

The process of liberalization of agricultural exports began 20 years ago. At that time, as evidenced by Globalmeatnews, subsidies to exporters of food was more than 10 billion euros. The gradual change in the foreign trade policy of the European Union aims, including the abolition of subsidies that affect competition. Therefore, the cost of subsidies to exporters gradually declining: in 2010 they accounted for about 500 million euros, while in 2013 the planned budget expenditures - 100 million euros.

Exporters pork stopped receiving subsidies in 2012, and this year will be deprived of financial support and poultry exports.

decision to cancel the compensation of losses to exporters was taken at a meeting of the European Commission. Support in the amount of 65-70% of the contract price will lose exports to regions such as the Middle East and the CIS. The decision is dictated by the fact that the expected decline in feed prices and increase the volume of meat trade between EU countries, where prices are higher than the world rate of profit is high.

liberalization of foreign trade, the EU is beneficial to competitors EU and above all Russia, which is experiencing pressure on its market for European exports. But the European market remains inaccessible to import due to high technical barriers and tariffs on above quota deliveries, reaching 100 percent or more.

trade-distorting subsidies are the lot of many years of trade policies of another major player in the international meat market - the U.S.. Every year in the state budget of the United States export subsidies to suppliers of food is 1.5 billion dollars and they do not reduce this cost, despite years of WTO requirements.