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| If we want to be successful in trade competition, we must learn to utilise preferences, which we have |
Globalisation
of the world economy to certain extent cause culmination of conditions
of prosperity in agriculture and agricultural-processing industry. Furthermore,
our farmers and workers did not avoid the pressure of stronger and richer
competitors. We interviewed Slovak Minister of Agriculture Pavol Koncos
on environment in which farmers and workers enterprise and especially on
support from the Slovak Agriculture Ministry.
Subsidy policy in the EU-member countries puts our agriculture and agricultural-processing industries into disadvantageous position. How do you perceive this fact?
Trade in agricultural commodities belongs to sensitive issues of countries associated in the European Union and in this way their common agricultural policy is necessary to be perceived, because 60 percent of financial sources of the EU are drawn for its implementation. Opinions regarding provision of subsidies, as well as overall regulation of EU-member countries commercial policy, are various. Representatives of Denmark, Netherlands, Great Britain and Germany prefer decrease of subsidies for domestic farmers, as well as amending of conditions regarding market regulation. Of course, EU-member countries with lower intensity of managing defend themselves. Due to their actions, decision on changes of common agricultural policy has been postponed several times. This problem can become a painful point in deciding on EU enlargement by countries of Central and Eastern Europe.
Arguments on advantages or rather the opposite on disadvantages of Slovakia's entry into the EU are often spreading around. Would be currently this act a contribution for resort of agriculture?
Monitoring of possible impacts in the field of agriculture and food industry in Slovakia's entry the EU at keeping a current level of agricultural production support in EU-member countries would not be favourable for Slovakia's resort. Obviously, prices of foods would be growing during the first years after the entry into the EU, what does not correspond with current level of purchasing power of our citizens. Slovakia's economy is not sufficiently prepared for such step without negative impact on citizens. It is necessary to hold discussions about these problems and to be carefully prepared for conditions of mutual co-operation.
European
Union provides financial means for various supporting programmes for associated
countries. What are resort conditions of co-operation in this field?
On the basis of mutual initiatives, we form a group of young specialists with perfect knowledge of foreign languages, who will be prepared for active relationships with the EU institutions, at ministry. Further activity is, for example, the programme of the European Union - SAPARD - for support of country policy. Our effort is specialised preparation for its implementation. The programme includes also co-operation with individual regions and it should positively influence progress of undeveloped regions having high level of unemployment.
One of ways, how to protect domestic market, is various restrictions of import of agricultural and food products. Do you consider their implementation as being actual?
As I have already mentioned currently we are able to compete with the EU-member countries within the framework of their subsidy support of exports. We cannot ad infinitum put obstacles regarding import of some commodities to Slovakia. We are members of the World Trade Organisation (WTO) and we are limited by the Association Agreement with the EU, where we are applying for membership. As advantages from these obligations are expressed especially in other resorts of national economy of Slovakia, we are finding supportive mechanisms for domestic producers in agriculture, as well as agricultural-processing industry. The aim is clear, if we want to compete and be successful in commercial competition, we must learn to utilise preferences, which we have.
You have mentioned priorities, which should be utilised. Would you be concrete in this field?
I consider especially concentration of production, which remained to certain extent kept in the resort, to be a certain advantage. Privatisation process partially interrupted a principle of capital ties between original production and processing industry. It is also reason for their gradual restoring. I realise that the process is complicated and long-lasting. If, for example, domestic meat-processors influenced Slovak market to certain extent, there is a presumption that especially bigger companies can successfully compete with foreign firms. In the field of agriculture, it is necessary to know, which productive activities are contribution from the point of view of export. If two thirds of agricultural areas are considered as being disadvantageous in Slovakia according to the EU criteria, so it would not be correct to plant let's say grape. We direct subsidiary policy towards such activities which have favourable conditions in given areas. For example, expansion of breeding of cattle, sheep and goats. There is still interest in meat or processed milk to cheese at European markets.
Are there also other areas, which enlivening would help farmers and workers of food industry?
For example, organisation of wholesale systems has been cancelled after 1990. Currently, we are going to find way with utilisation of foreign sources how to connect agricultural-food complex with trading system. It is one of important roles how to balance trend of engagement of trading system of Slovakia by strong foreign capital companies. This does not mean that I have qualms regarding their activities. But it would be mistake if we look at it without any response.
By J. Šucha, G. Pinter
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