The proposal of the European Commission to impose additional customs duties for the imports of Russian fertilizers is worrying that the EU agricultural sector, since Russia represents 25% of imports.
The final problem of the EU in its dispute with Russia is making an attempt to steadiness the imports of Russian fertilizers avoiding severe destructive repercussions for European agriculture.
At the top of final week, EU Member States adopted a proposal from the European Commission to impose additional customs duties on the imports of agricultural merchandise from Russia and Belarus.
The Commission claims that, with the intention to be issues, the Member States can be in a susceptible place if Moscow ought to introduce coercive measures towards them. In different phrases, European meals security is at stake.
Warning of farmers
But the measure is worrying the EU agricultural group. The Copa-Cogeca, the group that represents the pursuits of the sector in Brussels, underlines that the business relies upon closely on Russian fertilizers.
“Already right now, we import from different third international locations, however a higher demand will generate extra stress by way of logistics, and due to this fact increased prices. These prices of the prices will generate agricultural inflation, which may have repercussions by way of decrease earnings for agricultural producers and decreased competitiveness”, insists Dominique dejonckheere, power coverage consultancy.
Russian fertilizers symbolize about 25% of EU imports. According to the Commission, additional customs duties per tonne of fertilizers might steadily rise from € 40 or € 45 to € 315 or € 430 in three years.
The Copa-Cogeca stresses that the purchases of fertilizers “depend on common 10% of the variable prices of a farm. But for some sectors, specifically discipline crops, cereals and oily seeds, the fertilizer expenditure represents about 30% of the variable prices”, defined Dejonckheere.
Hit a steadiness
To the European Parliament, the supervisor of the textual content, Mep Inese Vaido (EPP), acknowledges that each one the events should take one step in direction of one another.
“I might say that it’s a balanced proposal. There are all the time many pursuits at stake. And if you happen to do a legislative proposal or perhaps a legislative act, it can’t be stated that each one events will probably be 100percenthappy. It will not be so,” says Latvian Mep.
But he believes that Europe ought to act and assume strategically. “Russia has managed to provide low cost gasoline fertilizers and promote them on the European market at very low costs. This signifies that if we purchase these Russian fertilizers, we proceed to feed the Russian warfare machine. Is it acceptable? No, it’s not acceptable.”
“So my private opinion is that this proposal might or ought to have been superior three years in the past,” he provides.
Strengthen the European business and diversification
The Commission believes that its proposal will improve the interior manufacturing of fertilizers and strengthen the business via these further taxes.
The sector has suffered from the power disaster and sanctions towards Russia, because the manufacturing of nitrogen fertilizers requires that pure gasoline produces ammonia to be used in fertilizers.
“Yes, there’s nonetheless a adequate manufacturing capability in Europe. But the issue for us will not be as availability as the worth. We want fertilizers at inexpensive costs and on this challenge we’ve no ensures from the sector. The drawback of the sector is that the power prices are too excessive,” says Dejonckheere.
To present higher visibility and assure costs at inexpensive costs, the Commission proposes to diversify provides from varied different international locations.
ANNOUNCEMENT“In case of deficiency, we’ve companions everywhere in the world and that is additionally a way of provide. And I do not assume this could significantly affect our manufacturing of agricultural merchandise,” says Inese Vastide.
EU Member States agree on the start, except Hungary and are keen to maneuver ahead. However, they remorse the absence of an influence examine and due to this fact desire a common monitoring of the state of affairs.
The European Parliament will formally face the issue initially of subsequent month. Once his place has been adopted, the MEPs should attain an settlement with the Member States on a joint textual content.
