The EU Commission has proposed to the WTO to drop all export subsidies on agricultural products, provided other countries, specifically the USA, abolish or reduce their support measures in a similar way. France has objected to the offer by Brussels. Washington shows willingness to follow the EU's approach. Both the EU and the U.S. are interested to put new life into the WTO discussions, which had abruptly ended in Cancun last year. On basis of this announcement, it will be difficult for the Commission to grant any export restitutions until the successful or unsuccessful end of the next WTO round. Time being the Commission says that no restitutions will be granted till the time, when a more precise picture of world crops and demand is available.
The EU has concluded a Free Trade Agreement with Mexico, which, however, does not change the existing trade barriers for grains and malt. Another agreement is negotiated with the Mercosur countries, and this deal will include improvements for the traffic of grains and grain products, details must still be worked out.
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