TTIP: Chances and challenges for agricultural family enterprises in Europe

By SME Europe

On Tuesday, 4th March 2016, SME Europe of the EPP hosted a working breakfast concerning: ‘TTIP: Chances and challenges for agricultural family enterprises in Europe’in the Salon des Membres of the European Parliament.

After a short introduction from Norbert Lins MEP who was also the moderator of the event, Elmar Brok MEP took the stage. Brok had pointed out the importance of economic cooperation on both sides of the Atlantic due to the shrinking share of both regions of world trade. “TTIP is useful on the economic side, but necessary in view of foreign policy.” Mr. Brok said. This is especially true on the agricultural sector. European farmers could gain big advantages from the opening of US markets by TTIP. But the member of the European Parliament responded also to concerns of many citizens. There are some points where the EU has to defend its own interests fiercely, e.g on protected geographical indications. Talking about food safety standards he demanded a more reasonable discussion, some of them are in the US even higher in Europe. In case of the arbitration courts, Mr Brok generic cialis said, the negotiations are now on the right track. They should just avoid discriminations of foreign enterprises. In relation to the vote in the parliament he promised: “We will make sure, that the treaty is fair.”

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The next speaker was Willi Kampmann, head of the office for international relations of the German farmers association. Like Brok, he sees TTIP as “geopolitical responsibility” . With an reasonable agreement we could “influence the food safety standards all over the world.” He also believes that the removal of non-tariff barriers to trade would bring many opportunities for the European agricultural sector. Some kind of fruits and vegetables can, for instance, just brought into the USA via one harbor. It would be much easier for European entrepreneurs to export their products to the United States if that regulation falls. But Mr. Kampmann also pointed out that the EU has also to conserve certain European standards. There are some import products, e.g. some sorts of meat which need to be protected by the EU through tariffs. Moreover the EU should keep genetically modified foods away from the European market.

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Andreas Thurner, Head of the office of the agricultural chamber Austria in Brussels, spoke at first about the debate of TTIP in Austria where the free trade agreement is seen even more critically than in Germany. Therefore he remarked that we need to have a fair agreement: “The best way to find the approval of the people for TTIP is to make sure that European food safety standards will be respected.” Therefore he demanded protection tariffs on important goods like meat, in order to keep protected geographical indications and to remove non-tariff trade barriers. But Mr. Thurner spoke also about the chances of that free trade agreement. Especially high quality agricultural products would have great opportunities to increase their profit due to TTIP.

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Then Albert Dess MEP who is also chief executive officer of a big cooperative dairy, took the centre stage. He also sees many good opportunities for European agricultural products especially the high quality ones on an open U.S. market : “You don’t buy an Audi or BMW because of the price, you buy it because it’s high quality. It’s the same thing with our high quality agricultural products.” Mr. Dess said. But the European high quality products often have no access to the American market due to high tariffs. TTIP could really help the farmers who are producing these high quality products. But he also remarked the necessity of looking carefully on the content of the agreement. “I will just know whether I approve TTIP in parliamentary vote, when I have carefully read the whole text of the agreement. “ Mr. Dessdemanded that every free trade agreement has to respect European food and social security standards otherwise he made clear that he would not approve the free trade agreement in parliament. On the other side Mr. Dess also made it very clear in the end that a fair TTIP agreement would bring much more advantages than disadvantages to the European agricultural sector.

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During the following discussion the previous arguments were presented in more detail. Kampmann stressed the great economical potential in TTIP standardizing the laws on both sides of the Atlantic, while Thurner pointed out, that the bio food sector would also profit from TTIP. Mr. Dess emphasized again the importance of a fair deal in case of the arbitration courts. The Green MEP Martin Häusling was much more skeptical about TTIP. He had strong concerns about the free trade agreement and had doubts that the European Parliament would refuse a bad deal on TTIP. The speakers strongly disagreed with that view and the MEPs said again they wouldn’t approve to a bad contract.

In the end all speakers agreed that TTIP could bring many great opportunities for the European agricultural sector, but that it’s necessary to watch carefully on the content of the final agreement.
Finally the moderator Norbert Lins MEP and Dr. Horst Heitz, the Executive Director of SME Europe of the EPP, thanked the speakers and the audience for their attendance and the great discussion.

The publication of this document received financial support from the European Parliament. Sole liability rests with the author. The European Parliament is not responsible for any use that may be made of the information contained therein.