Common Agricultural Policy (CAP) – Having started on the first day of 2014 and for the next six years (2020), the new CAP will have a budget of around € 373.2 billion.The new rules regarding direct payments (‘green’ payments, support to young farmers, etc.) will enter into force in 2015.
For the first time the European Council and the European Parliament negotiated the details of the new CAP as co-legislators (with identical competences), divided in to four legislative proposals. These include direct payments to farmers, the common organisation of the market, rural development and the regulation of the finances, management and accompanying of the new CAP in between 2014 and 2020.
Among the innovations brought forth by the CAP, each farmer will have the right to a direct payment per hectare should he respect ecological agricultural practices beneficial to the environment (‘greening’). Around 30% of Member States’ contributions will serve this purpose.
Experts predict that France and Germany will increase their sugar production and decrease imports.
The reform of the sugar sector within the CAP, which ends the system of quotas, will be the biggest problem for Brazil as of 2017.
The distortions of the market still remain as subsidies to large producers will decrease by only 5%. Products such as grain, rice, sugar, beef, pork and poultry, milk and lactose derivatives as well as processed products (with the exception of processed bovine meat and poultry) will also be subsidised.
With regards to governance, legislation now obligates disclosure of the beneficiaries of the CAP, allowing European citizens access to the way in which public funds are spent.
Source: Conselho da União Europeia
- The 28 member States delegate the running of the common trade policy to the European Commission as well as trade with third countries.
- The Treaty of Lisbon (2009) paved the way for foreign direct investment (FDI).
- The agenda for the 2010-2015 trade policy focuses on reducing barriers to trade, opening global markets and relying on trade as a motor for economic growth and the creation of jobs.
In October 2013, the European Parliament (EP) approved a proposal that aims to bestow on the EU the right to suspend or remove concessions and other planned obligations in the scope of commercial agreements.The aim of this is to: a) respond to third country violations of rules of international commerce affecting the interests of the EU; and b) to rebalance concessions or other obligations relating to international relations with third countries, if the conceded practice regarding EU goods is altered during the importation.
In this way, the European Commission (EC) will be able to reduce bureaucracy when certain necessities arise.These include the need to suspend concessions on tariffs, to create customs rights, to impose or amplify restrictions on import and export quotas, to cease concessions in public contracts when controversies occur or external means of safeguarding by countries which limit the EU’s commerce.
Research and Innovation (R&I)
Horizon 2020, the EU’s Research & Innovation Programme, which has € 80 billion in financing for 2014-2020, will be open to researchers from around the world.For Brazil, the partnership will require a joint financial expenditure. In the next two years, around € 15 billion will be paid out to sectors such as healthcare, digital security and intelligent cities.
The € 7.8 billion allocated in 2014 to R&I will finance projects in three main areas: scientific excellence, industrial leadership and societal challenges.