EC Leaders Reach Accord on Farm Subsidies

European Community nations reached agreement early today on an overhaul of their bloated farm programs, cutting huge subsidies to farmers in a move they hope will reinvigorate world trade talks.

“It’s done, finally, at last,” EC Commission spokesman Gerry Kiely said. The reform package took more than 1 1/2 years to negotiate.

Farmers across the trade bloc, especially in France, have staged protests against the reform package, which had received the political backing of the 12 states on May 21.

Farmers protesting subsidy cuts jammed highways throughout France on Tuesday, a day before millions of motorists were to head south to the Mediterranean on their annual vacations.

French Farm Minister Louis Mermaz, seeking to appease farmers back home, was given promises that the trade bloc would consider his demands for concessions.

The overhaul of the EC’s Common Agricultural Policy will cut subsidies to the trade bloc’s 10 million farmers and should make the EC more competitive on world markets.

Guaranteed prices for cereals were cut 29%, with 15% cuts for beef prices.

The reform should also slash huge stocks of surplus food that farmers produced with subsidies.

The United States has charged that the community’s farm subsidies distort world trade.

Disagreements on the issue of subsidies had stalled the Uruguay Round talks sponsored by the General Agreement on Tariffs and Trade.

British Agriculture Minister John Gummer said the reform package put the onus on the United States to move world trade talks forward.

“It is for the United States to move now,” he said.