CAP health check proposals could lead to EU trade distortions, says the CLA

Proposed changes to the Common Agricultural Policy (CAP) could create unfair distortions in trade within the European Union, says the CLA.

The rural economy experts believe that, while the Health Check proposals contain many welcome simplifications of CAP, several of these – the optional full decoupling, the optional move to flat rate payments and the optional use of Article 69, Specific Supports – allow too much Member State discretion.

CLA President Henry Aubrey-Fletcher said: "This opens the prospect that they will be implemented differently around the European Union, potentially creating distortions to trade. It is the Commission's role to stop such distortions."

However, the CLA welcomed the abolition of set aside and milk quotas.

"It makes no sense in a hungry world with serious food price inflation to be artificially holding back EU production," said the CLA President. "However, the European Commission must ensure an even-handed approach across the EU to any steps taken to preserve any environmental benefits which have been derived from set aside land."


On the Single Payment Scheme, he said: "The proposal for lower limits for the single payment of 250 euros or one hectare is sensible. However, the suggested progressive modulation is an unwelcome complication and a contradiction of the desire to move to flatter rate payments within a region. It will act as a perverse disincentive for needed farm structural change across Europe."

The CLA President said attempts to restrict those who benefit from the Single Payment Scheme to farmers only were highly unfair.

He said: "This is absolutely not the right approach. Our view is that these payments should go to anyone who is keeping agricultural land in good agricultural and environmental condition, regardless of the make-up of their business."

On a positive note, the CLA said that, broadly speaking, the proposals would continue to provide stability to absorb the wholesale reforms in the CAP.