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European leaders arrive for a group photo on the second day of the EU summit at the Europe Building, the headquarters of the Council of the European Union, in Brussels, March 22, 2024. Thierry Monas—Getty Images
The European Commission wants to stop Russia from using agricultural products as a means to wreak havoc on EU markets, and is moving to impose tariffs on grain imports from Russia and Belarus.
The commission said the tariffs were also aimed at depriving Russia of revenue by effectively curbing exports to the EU.
Imports of grains, oilseeds and derivative products from Russia and its ally Belarus account for only about 1% of the total EU market size, with domestic suppliers providing the majority.
But farmers already angry over the rise in cheap Ukrainian imports are worried, and the EU fears Russia will be encouraged to take advantage of the tense situation to further destabilize the 27-nation bloc. Are concerned.
“This supply shortfall will be partially filled by EU domestic production, benefiting EU farmers who can sell within the EU,” the commission said. “Furthermore, this shortfall is expected to be partially filled by imports from third countries that traditionally supply the EU market, such as the United States, Brazil, Ukraine, Serbia and Argentina.”
In 2023, the EU imported 4.2 million tonnes of grains, oilseeds, wheat, maize, sunflower meal and other derivative products from Russia, valued at EUR 1.3 billion. In comparison, EU suppliers supply 300 million tonnes per year.
The tariffs are designed to be high enough to block imports from Russia. The European Commission’s plan requires only the consent of around two-thirds of member states, so it could be adopted immediately and would require tariffs to reach 95 euros per tonne or for prices to rise by at least 50%. It will be one or the other.
In addition, Russia and Belarus will also lose access to the EU’s WTO grain quotas, which offer better tariff treatment on some items.
European Commission President Ursula von der Leyen said: “To reduce the increased risk to our markets and farmers, we propose to impose tariffs on these Russian imports.”
“They will reduce Russia’s ability to exploit the EU for the benefit of its war machine. And we maintain our commitment to maintaining global food security, especially for developing countries.”
To support Ukraine in its war with Russia, the EU imposed several rounds of sanctions against Russia. The measures target the energy sector, banks, the world’s largest diamond mining company and other companies, and Russian officials are subject to asset freezes and travel bans.
Russia’s invasion of Ukraine and a combination of other factors pushed global food prices to record levels, but they have since fallen from their record highs set in 2022.
Although the EU did not ban exports of Russian food and fertilizer to non-EU countries as part of the sanctions, the Russian government blamed the EU for global food shortages.
EU officials said the tariffs on Russian grain would not affect trade with third countries and transit within the bloc would remain unhindered.
“The proposed tariffs will therefore have no impact on global food security, particularly for developing countries,” the European Commission said. “On the contrary, it is expected to create incentives for Russia to export to non-EU destination markets, including developing countries.”
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