The European Union has raised levies on Russian agricultural items.
Russia's grain will become more costly. The EU is eliminating duties for entrance. The intricate process had to be tackled. It was essential to maintain global food stability and follow WTO guidelines. The Ukraine and farmers backed this move.
EU countries decided in Brussels, beginning in July, to impose more substantial fees on imported grains from Russia. This decision restricted Russian imports of wheat, rye, and oats. This tactic also aims to halt "Russian grain's impact on the agricultural industry's destabilization," explained EU Trade Commissioner Valdis Dombrovskis.
Furthermore, higher duties lessen "Russia's financial resources for its war in Ukraine," Dombrovskis added. The EU is also targeting preventing the sale of "stolen Ukrainian grains" without hindrance on the European market.
The European Union's Council disclosed that these tariffs would create a "binding" impact. The futures cost for hard wheat seeds will be 148 euros per tonne, while the cost for rye and oats will be 93 euros per tonne. Nonetheless, the entrance of, for instance, soybeans and sunflower seeds will be free of taxes. Sunflower oil, on the other hand, will be subject to a 6.4% tariff.
The EU reported that Russia exported 4.2 million tons of grains and oil merchandise, worth 1.3 billion euros, to the EU in the past year. The EU, however, sells much more grain to third nations, like in Africa. Therefore, there were lengthy discussions in Brussels before hiking up tariffs on Russian grains.
The Council reaffirmed that EU deliveries to third nations would not be influenced by the new tariffs. "We've ensured to preserve global food security," Dombrovskis said when describing his suggestions.
Additionally, there were legal challenges to implementing higher duties on Russian imports since Russia benefits from the Most Favored Nation clause as a WTO member. The EU is now referring to a security clause in the WTO agreements.
Ukrainian President Volodymyr Zelenskyy criticized the EU for continuing to absorb "unimpeded" Russian agricultural products. Farmers' associations have protested for months against the import of agricultural products from Russia and Ukraine. They allege that these imports in the EU are depressing market prices.
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- Due to the EU's increased tariffs on Russian agricultural products, trade conflicts between Europe and Russia over grain exports have escalated.
- The EU's agricultural policy, which includes imposing punitive tariffs on Russian grains, aims to deter Russia's attack on Ukraine and prevent the sale of stolen Ukrainian grains on European markets.
- In response to Russia's actions in Ukraine, several EU countries, including those within the EU, have advocated for robust trade measures, such as these agricultural tariffs, to protect their own agricultural industries and support Ukraine.
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