EC Leaders Reach Accord on Farm Issues

European Community agriculture ministers Tuesday approved a radical reform of their farm policy, clearing a major hurdle in long-stalled world trade talks, diplomats said.

The unanimous accord was struck around midnight, just before Britain was due to take over the rotating EC presidency. The timing of the vote allowed Portugal, which had held the presidency, to take credit for the reforms it painstakingly negotiated.

Formal adoption of the package, which will cut grain prices and take land out of production in a bid to cut the EC’s food stockpiles, was delayed at the last minute by French and Italian demands.

France and Italy wanted a law protecting foodstuffs originating in a particular place from imitation to be adopted at the same time.

In the end a decision on the proposed law, which was opposed by Denmark, the Netherlands and Belgium, was deferred until a later meeting, the diplomats said.

France and Italy agreed to the package only after assurances that the EC’s executive commission would submit proposals dealing with particular problems their farmers face.

France had demanded a shopping list of concessions to pacify its farmers, who have gone on a rampage against the reforms. Italy wanted to be able to produce more milk.

The accord is seen as a key card for the EC in efforts to conclude the current 6-year-old round of world trade talks being held under the General Agreement on Tariffs and Trade.

The main stumbling block in the talks has been a dispute between the EC and the United States over farm subsidies.