By Hugh D. Clout (auth.)
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During the rest of the transition period a variable element (90 per cent of each country's levies on farm goods) was introduced to cover about one-half of the cost of the Fund. The remainder was to be met according to a fixed scale from national budgets. In December 1969 a fourth marathon meeting took place. whereby the Six will gradually pay into a common fund all customs duties on imports from non-member countries and part of the revenue from the value-added tax to be levied throughout the Community in 1972, as well as the levies on food imports that are already paid into the Farm Fund.
Fourth, no more land should be reclaimed for farming from the sea or from scrub or forest. Instead the Community would pay at least 80 per cent of afforestation costs. Land tax on property newly turned over to timber or recreation should be refunded for at least nine years. Fifth, advice and training should be made available more readily for those who chose to remain in the Community's modernised farming sector and also for those who decided to retrain for other jobs. Encouragement should be given for establishing co-operatives and producer groups to increase further the scale of farming activities.
Commission responsible for agriculture, clear differences of opinion were put forward. The French emphasised organised markets, the Germans stressed structural reform as a way of raising farm incomes, the Italians argued in favour of liberalising trade and abolishing subsidies, and so on. In spite of formidable differences of opinion, the following ambitious objectives were set down which reflected the conflicting aims embodied in the Treaty for agriculture : (i) to maintain a close correlation between policies for improving marketing and farm structures; (ii) to increase trade in farm products between members of the Six and with third countries, and to eliminate all quantitative restrictions; (iii) to reach a balance between supply and demand, avoiding surpluses and allowing specific agricultural regions to concentrate on crops which they produced best; (iv) to eliminate subsidies which distorted competition between individual member countries and regions; (v) to improve the rate of return on capital and labour; (vi) to preserve the family structure of farming; and (vii) to encourage rural industrialisation, to draw away surplus agricultural labour and eliminate marginal farms, and to give special aid to the poorer agricultural regions.
Agriculture by Hugh D. Clout (auth.)