EU Imposes New Tariffs on Russian Wheat to Protect Domestic Farmers and Stabilize Market Prices

The European Union (EU) is set to impose substantial tariffs on wheat imports from Russia, with the additional duties projected to exceed 40 million euros. This move is in response to significant shifts in the wheat import market, particularly affecting Italian farmers, and has been extensively detailed by Coldiretti, an influential agricultural organization in Italy.

In 2023, Italy witnessed an unparalleled increase in Russian durum wheat imports, primarily used for pasta production. The total volume of these imports reached nearly half a million tonnes—an increase of more than 1000% compared to the previous year. Coldiretti has pointed out that this sudden surge is attributable to speculative trading and competitive disparities, which have severely depressed the prices of locally produced Italian wheat. The resulting 60% drop in wheat prices has pushed the cost of wheat cultivation below production costs, rendering it financially unsustainable for many Italian farmers and placing their livelihoods at risk.

The proposal for the new tariffs was first reported by the Financial Times, noting that the European Commission plans to introduce a tariff of 95 euros per tonne on cereals imported from Russia and Belarus. The rationale behind this decision is to mitigate the flood of cheap grain entering the EU market, which has been detrimental to the economic stability of EU farmers. By implementing these tariffs, the EU aims to stabilize the market prices and create a more equitable trading environment.

Furthermore, Coldiretti has highlighted another significant issue contributing to the market disruption: the influx of wheat imports from Turkey, which often include Russian wheat re-exported through Turkey. In total, over 1 million tons of such wheat crossed into Italy last year, compounding the reduction in the price of Italian wheat by 60%.

The adverse effects of these imports extend beyond economic implications, threatening the sustainability of agricultural practices in Italy. Many farmers, especially those in internal areas without alternative crops, face the potential collapse of their operations.

Coldiretti sees the Commission’s initiative to impose duties as a vital first step toward ending what it describes as unfair import practices. However, the organization argues that imposing tariffs alone is not sufficient. Coldiretti calls for additional measures, including more robust support for wheat supply chain contracts, to protect farmers’ income effectively. Such support would not only stabilize prices but also enhance the resilience of the EU’s agricultural sector against similar market distortions in the future.

This situation highlights a critical moment for EU agricultural policy, where decisions made now could define the economic landscape for European farmers for years to come.