The European Fee desires to stop Russia from utilizing farm merchandise as a instrument to wreak havoc on the EU market and is shifting to impose tariffs on grain imports from Russia and Belarus.
The tariffs are additionally geared toward denying Russia income, as a result of they’ll successfully suppress exports to the EU, the fee mentioned.
Imports of cereals, oilseeds and derived merchandise from Russia and its Belarus ally are nearly 1% of the general dimension of the EU market, with home suppliers offering the majority.
However with indignant famers already apprehensive by the rise of low cost Ukrainian imports, the EU fears Russia will probably be inspired to benefit from the tense scenario to additional destabilize the 27-nation bloc.
“This shortfall in provide will probably be crammed partially by EU’s home manufacturing and, due to this fact, profit EU farmers who will have the ability to promote within the EU,” the fee mentioned. “As well as, the shortfall is anticipated to be partially crammed by imports from third international locations which historically provide the EU market such because the U.S., Brazil, Ukraine, Serbia, or Argentina.”
EU imports of cereals, oilseeds and derived merchandise from Russia together with wheat, maize, and sunflower meal have been 4.2 million metric tons in 2023, value 1.3 billion euros. As compared, EU suppliers present 300 million metric tons per 12 months.
The tariffs are designed to be excessive sufficient to discourage Russian imports. Beneath the European Fee’s plan, which might be adopted shortly because it solely requires round two thirds of member international locations to agree, the duties will both attain 95 euros per metric ton, or improve costs by at the least 50%.
As well as, Russia and Belarus can even not have entry to any of the EU’s WTO quotas on grain that provide higher tariff remedy for some merchandise.
“We suggest the imposition of tariffs on these Russian imports to mitigate the rising threat to our markets and our farmers,” European Fee President Ursula von der Leyen mentioned.
“They’ll scale back Russia’s capability to take advantage of the EU for the good thing about its warfare machine. And we keep our dedication to preserving world meals safety, particularly for creating international locations.”
In help to Ukraine within the warfare towards Russia, the EU has imposed a number of rounds of sanctions on Moscow. The measures have focused the power sector, banks, the world’s largest diamond mining firm and different companies and made Russian officers topic to asset freezes and journey bans.
World meals costs hit document degree on account of the Russian invasion of Ukraine mixed with different components however have since fallen from document highs in 2022.
Whereas the EU didn’t ban exports of Russian meals or fertilizers to non-EU nations as a part of its sanctions packages, Moscow blamed the EU for the worldwide meals scarcity.
EU officers mentioned the tariffs on Russian grain won’t have an effect on commerce with third international locations, and that the transit by the EU will stay unhindered.
“The proposed tariffs will due to this fact not have an effect on world meals safety, significantly for creating international locations,” the EU Fee mentioned. “Quite the opposite, they’re anticipated to create an incentive for Russia to export to non-EU vacation spot markets, together with creating international locations.”
