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The European Commission has published an overview of agri-food trade. According to the survey, agri-food exports grew by 13% (EUR 12.8 billion) in May 2019 compared to May 2018. Exports of pork, baby food, spirits, liqueurs and wine strengthened in particular. On the other hand, exports of sugar beet and cane, vegetable oils and live animals decreased. Exports to China, the USA, Japan and Canada strengthened the most. Imports to the EU also increased by a total of 6% over the same reporting period (EUR 10.7 billion). Imports of palm oil, unroasted coffee and tropical fruit decreased the most.
More information is available here.

EU Ministers of Agriculture met on 15/07/2019 at the Council of Ministers, the first one under the Finnish Presidency. Ministers were informed about the priorities of the Finnish Presidency, focusing in particular on climate, sustainability, greening policy and setting transition rules. Furthermore, ministers discussed the rules of the new green architecture under the CAP, the situation on the EU sugar market (here), African swine fever, and animal welfare during transport (separate reports on African swine fever and live animal transport see below). The Finnish climate and sustainability focus can turn the discussions in the Council in a different direction than they have been so far, which could also delay the planned agreement on the Council's position on the CAP. The ministers were inconsistent in the debate on the new green architecture - FR, DK, NL and DE supported the Commission's proposals, while IT, ES, PL, LV and MT rejected the Commission's proposals with the argument that they were too stringent or demanding. According to IT, climate and environmental regimes (so-called eco-schemes) should not be compulsory for Member States, IT has proposed the introduction of eco-schemes for the territories, which would allow subsidies to farmers on the basis of their unique location conditions. Small farmers, according to IT, should be exempted from eco-scheme rules. According to the ES Minister of Agriculture, the rules of crop rotation or nutrient management scheme should be introduced gradually in order to give farmers time to adapt to the new rules and changes.

The Ministerial debate also showed:

Support for an adequate CAP budget – IE, SK, ES, IT, SI, LT, CY, LV, FR, HR, SE;
Support for setting CAP rules so that new requirements do not compromise competitiveness – CZ, FR;
The rules of eco-schemes should be more flexible than they have been proposed so far – IE, PT, SI;
Eco-schemes should be mandatory – IE, DE, FR;
Total of 30% from the second pillar and 40% of the total CAP budget should be earmarked for AEKO – ES;
Total of 40% instead of 30% of the second pillar’s budget should be earmarked for AEKO– FR;
Support for maintaining 30% of the second pillar’s budget for AEKO measures – LU, PT, LT, IE, EE, RO, HU, BE, SI, SK, PL, IT, CZ, CY;
Support for the exclusion of eco-schemes from capping of direct payments – DE, SI, RO, CZ, SK, CY;
Cross compliance rules should apply to everyone regardless of size – DE, BE, SK, NL, CZ, DK;
Cross-compliance rules should be simplified for small farmers – LT, EE;
Cross-compliance rules should not apply to small farmers – IT, LV, PL, MT, BG, HU, GR, EE, CY, LT, HR;
Support for achieving external convergence – EE, LV;
Support for setting a clear definition of real farmers, promoting the principle of voluntariness – CZ;

Finland will try to reach a general agreement on CAP reform by the end of 2019. However, according to Finnish Minister of Agriculture Jari Leppä, this will only be possible if the Member States agree on the Multiannual Financial Framework, the EU budget for 2021-2027, in the coming months.
More information is available here.

The Scientific Advisory Committee recommended to the German Agriculture Minister Julie Klöckner to support the reform of the direct payments system under the Common Agricultural Policy. According to the Advisory Committee, direct payments should be reformed between 2021 and 2031 so that after 2031, they are not paid for area but only to promote climate and environmental friendly practices and climate and environmental protection. Klöckner has refused the recommendation for the time being, she intends to still support direct area payments, and Germany should in particular support redistributive payments. Klöckner's main argument for rejecting the recommendation was to maintain the competitiveness of European agriculture and to provide compensation to farmers for increasing demands from the EU.
More information is available here and here.

Last week, the European Parliament's second largest political group, S&D, sent a letter to Ursula von der Leyen, President of the European Commission, requesting a revision of the CAP reform proposed by the Commission in June 2018. According to S&D, a new proposal should be drawn up to ensure the coherence between safe, high quality and nutritionally rich agricultural production at affordable prices, and a healthy environment and efforts to tackle climate change, sustainable development of rural areas, animal welfare, and adequate living standards for farmers.

German Defense Minister Ursula von der Leyen was confirmed by the European Parliament as President of the European Commission. The European Parliament voted on the post of the President on 16/07/2019, Ursula von der Leyen received a narrow majority of votes (minimum required to be elected was 374, she was elected by 383 votes). Von der Leyen will take over the mandate on 01/11/2019. The Commissioners will now be selected - the Commission President will send an official letter to the Member States, inviting to present their candidates for Commissioners. Candidates for the various positions in the relevant committees of the European Parliament should be present at hearings from 30/09/2019 to 08/10/2019. The new Commissioners will subsequently be confirmed by the Parliament, probably in the period 21-24/10/2019.

Last week, Ursula von der Leyen said that ensuring the access of all people to healthy food and education is crucial in the fight against poverty in the EU, the European Union should also continue to seek becoming a carbon-neutral region by 2050 (it should produce as much carbon as it is able to absorb itself). In response to Leyen's speech, environmental NGOs expressed disappointment that Leyen has not yet supported a more radical reform of the Common Agricultural Policy, which, according to environmental organizations, should be more focused on climate and environment.
More information is available here.