NFU Scotland is reiterating its priorities for the World Trade Organisation (WTO) negotiations at meetings in Brussels this week. With a flurry of activity continuing amongst the various negotiating groups in the lead up to the WTO summit in Hong Kong next month, NFUS is highlighting its seven key priorities for Scotland.

The WTO negotiations on agriculture centre on three main areas: eliminating or reducing export subsidies; reducing domestic farm support deemed to be trade distorting; and cutting tariffs on imported products. As well as focussing on those three areas, NFUS is currently lobbying in Brussels and at home on four other issues.

Scotland's WTO priorities:

1. The removal or reduction of export subsidies and equivalent measures must be done on an equal basis across all WTO members.

2. The EU's moves to reduce trade-distorting support must be matched by competitor countries, notably the US.

3. The case for designating products as 'sensitive', and therefore subject to lower tariff cuts, must be carefully considered.

4. WTO rules must be amended to allow recognition of production standards.

5. Alliances must be maintained with EU partners to influence the EU negotiating position.

6. A joined-up strategy must be established to ensure the EU agricultural strategy is reflected in its WTO negotiating position.

7. The UK domestic supply chain must recognise and reward higher production standards.

NFUS President John Kinnaird flew to Brussels today and will be meeting MEPs and Commission officials to discuss WTO issues ahead of next month's summit. Speaking ahead of that trip, he said:

"A firm deal in Hong Kong is unlikely and whether there will be enough progress to deem the meeting a 'success' remains to be seen. However, if the framework for a deal is thrashed out, it could have more impact on Scottish agriculture than reform of the Common Agricultural Policy. It is vital that we punch above our weight as the talks progress. Our alliances with other EU farm unions ensure we can do that, as they share many of our concerns."

Speaking at a briefing in Edinburgh today, NFUS Vice President Bob Howat said:

"The moves to tackle import tariffs could have the greatest impact. We are not a major agricultural exporter outwith the EU, so we have little to gain from greater access to foreign markets. On the flip side, our competitors have a great deal to gain from greater access to our market.

"There are two issues for Scotland on import tariffs. Firstly, the WTO must address the issue of varying production standards. It would be perverse if the WTO persisted with a system which effectively penalised producers in this country for high production standards, by allowing cheap imports to undermine the industry. We know that faces huge opposition from agricultural exporters, hence we have to continue to press our own domestic supply chain for recognition of high standards.

"Secondly, there will likely be a mechanism to safeguard certain products. However, it is going to have to be a very careful calculation as to whether these mechanisms should be used. For example, if maintaining a higher tariff for imported beef increases the proportion that can enter at zero duty or means we must reduce tariffs even further on other products, it may not be in our interests to go down that route. It will be delicate judgement as to where the balance of advantage lies and until we see the outcome of the Hong Kong talks we won't be able to make that judgement.

"Ultimately, the EU has to bear in mind that it has a vision for a sustainable farming sector that came through loud and clear with its recent reform of the CAP. It must not sacrifice that in an attempt to get a deal at any price. That means sitting around the WTO negotiating table and considering the kind of agricultural industry it wants to see emerge from the talks."

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