Bernard Durkan (Kildare North, Fine Gael)
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Question 234: To ask the Minister for Agriculture and Food the extent to which the effects of the CAP review and WTO have affected the agricultural sector to date; the likely effects for the future; and if she will make a statement on the matter. [12470/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The main element of the most recent review and reform of the Common Agricultural Policy was the introduction of the full decoupling of direct payments from production in the case of livestock production, milk production and arable crops. Ireland opted to implement full decoupling with effect from 2005. Partial decoupling options were provided for member states that do not wish to decouple fully. The latest reform changed the way that the EU supports the agricultural sector.

Breaking the link between support payments and production has provided farmers with income stability allowing them to become more market-orientated in responding to consumer demand. Payment of the decoupled payments is conditional on farmers' compliance with a range of environmental, food safety and animal welfare standards. The net effect of these changes is to make agriculture more competitive, better prepared for globalisation, more compliant with food safety requirements, more environmentally sustainable and more conscious of animal welfare requirements.

CAP reform and the WTO negotiations are closely interlinked. The mid-term review in 2003 was designed in part to prepare and position the CAP for the negotiations in the current Doha round. The new WTO round represents a major challenge to agriculture and the future of the CAP. I am committed to securing an agreement which allows the EU and Ireland to enjoy the benefits of an active and supportive CAP and a rural development policy that protects farmers livelihoods and ensures the continuation of vibrant rural communities.