The World Trade Organization (WTO) was established in 1995 and is the cornerstone of a rules-based multilateral trading system. The WTO is an organization led by 164 members currently. The main activities of the WTO are:
• multilateral negotiations for gradual liberalization of markets;
• defining the basic legal rules for trade in the form of agreements;
• resolving trade disputes between countries;
• monitoring members' trade policies.
The European Union is a member of the WTO and, given the fact that it is the largest trading bloc in the world, plays a key role in the organization. The European Commission represents the EU, which negotiates on behalf of all Member States.
The EU actively supports the work of the WTO in drafting multilateral rules and trade liberalization, seeking to:
• maintain open markets and provide new markets for European businesses;
• strengthen multilateral rules and ensure compliance with others;
• promote sustainable development in trade.
The WTO Agreement on Agriculture aims to establish a "fair and market-oriented system for trade in agricultural products". It lays down rules that apply to all WTO members and aims to create the conditions for a substantial gradual reduction in support and protection for agriculture. The agreement was part of the results achieved during the Uruguay Round, and took a decisive step towards strengthening market orientation in agriculture worldwide.
The bilateral agreements grouped in 6 sections. These are:
• African, Carribbean and Pacific countries (ACP).
• Americas.
• Asia and Australasia.
• Enlargement countries.
• Middle East – Gulf countries.
• European Free Trade Association and the European Neighbourhood Policy (EFTA & ENP).
The promotional policy has clear priorities, which are set annually – in a work programme. For beneficiaries, branch and interbranch producer organizations at national and European level, as well as organizations performing public services to promote agricultural products such as the Agricultural Chambers, for example, are designated as beneficiaries. The list of eligible products includes all agricultural products (excluding tobacco) and processed products such as beer, pasta, sweetcorn, cotton, etc. Under certain requirements, wine, spirit drinks with a protected geographical name and fish and fishery products may be promoted. European quality schemes, including national quality schemes, organic products and products from remote areas, are a top policy priority. In the same direction, the strategic importance of displaying trademarks and the origin of European products is recognized.
The EU helps the sector's professionals to finance information and promotion campaigns. By explaining to consumers and importers the standards and the quality of EU agri-food products, EU promotion programmes can help European producers in an increasingly competitive world.
A promotion programme is a coherent set of operations which can include advertising campaigns in the press, on television, on radio or on the Internet; point-of-sale promotions; public relations campaigns; participation in exhibitions and fairs, and a range of other activities. It can be a B2B campaign or B2C campaign. It shall be implemented over a period of at least one year but no more than three years.
A promotion programme shall aim to:
• highlight the specific features of agricultural production methods in the Union, particularly in terms of food safety, traceability, authenticity, labelling, nutritional and health aspects, animal welfare, respect for the environment and sustainability, and the characteristics of agricultural and food products, particularly in terms of their quality, taste, diversity or traditions;
• raise awareness of the authenticity of European protected designations of origin, protected geographical indication and traditional specialities guaranteed.
Promotion campaigns about EU farm products are designed to open up new market opportunities for EU farmers and the wider food industry, as well as helping them build their existing business.
There are two kinds of promotion action:
1. those run by European trade or inter-trade associations and co-financed by the EU;
2. those run directly by the EU itself, such as diplomatic offensives by the Commissioner in non-EU countries to develop agri-food trade, or participation in fairs and communication campaigns.
Promotion policy rules set out how EU funding can be used for information and promotion initiatives in both EU countries and countries outside the EU.