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FM AMEMBASSY VIENNA
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RUEHRC/USDA FAS WASHDC 1091
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RUEHBS/USEU BRUSSELS
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UNCLAS SECTION 01 OF 02 VIENNA 000453 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD EUN TBIO AU
SUBJECT: AUSTRIAN EU PRESIDENCY'S AGRICULTURE AGENDA 
 
 
Summary 
------- 
¶1.  During a February 3 briefing to emboffs, Hans Kordik, 
the Austrian Ministry of Agriculture's (MoA) EU Coordinator, 
identified two political priorities and four thematic 
priorities for its EU Presidency.  The GoA will resist any 
efforts to reform the CAP further, arguing the farming 
sector needs stability after years of "incessant reforms." 
Kordik claimed that, while agricultural spending represents 
43% of total EU expenditures, CAP expenditures, as a 
percentage of EU and national budgets, are only 0.6%. 
Austria will also emphasize the need to improve rural 
competitiveness.  Thematic priorities include implementing 
the 2005 sugar reform; promoting organic farming; pushing 
for more restrictive EU-wide guidelines on coexistence 
between GMOs and organic/traditional crops; and promoting 
biomass and biofuels as a means to reduce dependency on 
fossil fuels and to reduce greenhouse gas emissions.  Kordik 
said Austria hopes for a successful Doha Round, but will 
insist on a "single undertaking," with progress on service 
and NAMA simultaneous with progress on agricultural issues. 
End summary 
 
 
Ministry of Agriculture's Political Priorities 
--------------------------------------------- - 
 
¶2.  Hans Kordik, Head of the EU Coordination and Planning 
Division in the Austrian Ministry of Agriculture, 
Environment, Forestry and Water Management (MoA), recently 
provided Emboffs an outline of the MoA's priorities for the 
Austrian EU Presidency.  Kordik pointed out that Agriculture 
Minister Josef Proell is emphasizing two broad political 
priorities: a halt to CAP reforms and increasing 
competitiveness in rural regions.  In the MoA's view, the 
CAP has undergone continual reforms in recent years (Agenda 
2000, 2003 Fischler Reform, 2004 Mediterranean Package, 2005 
Rural Development, and the 2005 Sugar Reform).  Proell, 
according to Kordik, wanted to deliver "reliability and 
security," to the farming sector, while avoiding the term 
"reform."  By emphasizing the human factor - education and 
training - Austria hopes to increase competitiveness in 
rural regions and promote tourism.  According to Kordik, it 
is necessary to support agricultural production in less 
traditional areas, such as mountainous regions, to maintain 
pastoral settings and avoid forest overgrowth. 
 
 
Ministry of Agriculture's Thematic Priorities 
--------------------------------------------- 
 
¶3.  For the Austrian Presidency, the MoA has identified four 
thematic priorities: implementation of the 2005 Sugar 
Reform; organic farming; GMOs; and promoting biomass and 
biofuels as alternative energy sources. 
 
¶4.  Organic Farming: Kordik claimed that 10% of Austrian 
farming is organic, the highest percentage in the EU.  The 
GoA is encouraging the Commission to table an Organic 
Farming Regulation by the end of its Presidency.  This would 
simplify and harmonize production standards throughout the 
EU.  Kordik added that the regulation would improve market 
access for organic food imports. 
 
¶5.  GMOs: Kordik stated that, within Austria, opposition to 
GMO agricultural products remains "non-controversial."  A 
Commission report on "coexistence" is due by the end of 
February, and, according to Kordik, the GoA and Commission 
will use the report as the basis for an April 4-6 
"Biotechnolgy Conference" in Vienna.  (Note: the MoA is also 
sponsoring a conference April 18-19 on "The Role of 
Precaution in GMO Policy."  End Note) 
 
¶6.  Kordik said the GoA is emphasizing "freedom of choice" 
for consumers and farmers.  For the GoA, the issue of 
liability is crucial, because of the likelihood that biotech 
crops will contaminate organic and conventional fields. 
Austria would like the Commission to define EU-wide 
guidelines for "coexistence" to address cross-border pollen 
flow.  Kordik admitted that the previous Agriculture 
Commissioner had been skeptical about the Austrian approach, 
but he claimed that Commissioner Fischer-Boel is more 
receptive. 
 
¶7.  Biomass/Biofuels: The GoA intends to promote the use of 
biomass and biofuels as a way to reduce EU dependency on 
imported fossil fuels and to reduce greenhouse gas 
emissions.  Kordik pointed to an EU Communication that 
 
VIENNA 00000453  002 OF 002 
 
 
recommends increasing biofuel's proportion of total energy 
to 5.7% by 2012.  Kordik added that biofuels would be an 
important topic at the March 14 Energy Council. 
 
 
CAP: Stop the Reforms! 
---------------------- 
 
¶8.  Kordik gave a spirited defense of the CAP.  He said, "No 
other area (of EU policy) had gone through as many reforms 
as the CAP."  Recurring criticism of excessive spending on 
the CAP is "too narrowly focused," he argued.  Kordik noted 
that, while CAP expenditures represent 43% of the EU budget, 
CAP expenditures as a percentage of the EU budget and 
national budgets are only 0.6%.  By comparison, EU-wide 
spending on social welfare programs is 37%, and military 
expenditures are 1.8%.  Kordik pointed out that CAP 
expenditures are falling proportionately.  Spending on 
structural assistance, in contrast, is rising steadily, 
expected to total 33% of the budget by 2013.  Kordik 
restated the GoA's position that it is necessary to stop the 
cycle of continual CAP reforms to restore stability to the 
agricultural sector. 
 
 
WTO: A Single Undertaking-Agriculture, NAMA, Services 
--------------------------------------------- -------- 
 
¶9.  On WTO negotiations, Kordik lamented that there had been 
progress on agricultural issues, especially on export 
refunds, at Hong Kong, but no progress on NAMA or services. 
The GoA wanted a successful conclusion of the Doha Round, 
but Austria supported a "single undertaking," i.e., 
simultaneous progress in all sectors.  According to Kordik, 
the EU will not put forward a new offer on agricultural 
market access.  Kordik characterized Austria's particular 
interests in the agricultural negotiations as non-trade 
concerns (environmental) to retain green box measures. 
Kordik hoped that WTO Director General Lamy's modality 
consultations would give new impetus to the negotiations. 
 
MCCAW#