November 27, 2007

EU plans aid for pork exports hit by weak dollar

The European Commission announced plans Monday (November 26) to help pork exports as EU farmers struggle to cope with the weak dollar, which is making their products less competitive outside Europe.

Under the proposal, pork farmers would be refunded for the difference between prices on the world market and the currently higher price on the European market.

"Refunds would be payable for exports to all destinations," the European Union's executive arm in a statement.

EU Farm Commissioner Mariann Fischer-Boel unveiled the plan, which still needs to be formally approved by a group of experts, to farm ministers at a meeting in Brussels.

The move marks an about-face from Fischer-Boel who only a month ago dismissed requests for such aid from major pork producers France, Poland and Ireland.

"The sharp drop of the US dollar has ... seriously reduced the competitiveness of European exporters, whose main competitors are the US, Canada and Brazil," the Commission said.

The dollar has steadily drifted lower against the euro in recent months over concerns about the US economy. The greenback fell on Friday to a record low against the single European currency of 1.4967.