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EU to Impose Heavy Tariffs on Grain and Grain Products Imports from Russia and Belarus Starting July 1

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EU to Impose Heavy Tariffs on Grain and Grain Products Imports from Russia and Belarus Starting July 1

by Arvie I
06/01/2024
in Global Trade, Tariffs & Duties

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In a bid to address various concerns and safeguard its agricultural sector, the European Union (EU) has decided to implement substantial tariffs on grain and grain products imported from Russia and Belarus. The decision, which received the green light from the EU Council on May 30, is set to take effect from July 1.

Under the new tariffs, wheat imports originating from Moscow and Minsk could witness an approximate 40% price increase, with tariffs set at €95 per ton. Similarly, the tariffs on oilseeds, derivatives, beet pulp pellets, and dry peas will be doubled, imposing a 50% fee on these imports into the EU.

The initiative to impose tariffs was set in motion by the European Commission on March 22, aiming to address several pressing issues. Firstly, it seeks to mitigate the potential risk of hybrid attacks from Moscow, which could exploit agricultural products to disrupt the stability of the EU market. Secondly, it aims to counter the alleged export of cereals obtained from occupied territories in Ukraine, falsely labeled as Russian. By imposing these tariffs, the EU intends to limit Moscow’s financial resources, which could be used to finance activities deemed detrimental to European interests, particularly the ongoing conflict with Kyiv.

European Commission Vice President and Trade Commissioner Valdis Dombrovskis emphasized the EU’s unwavering commitment to global food security and ensuring that developing countries are not adversely affected by these measures. It’s important to note that the tariffs will only apply to products destined for consumption within the EU, exempting those in transit to non-EU countries.

The implementation of tariffs on Russian grains and oilseeds is expected to have indirect benefits for European farmers. Last year, they faced significant price declines due to the influx of imports from Russia. This move has been widely supported by agricultural organizations, such as Coldiretti, which views it as crucial for protecting the interests of farmers, including those in Italy.

Despite concerns about potential impacts on consumer prices, Brussels has reassured that the tariffs are unlikely to have a significant effect. This assertion is based on the fact that imports from Russia and Belarus constitute only a small fraction of the total grain production or imports within the EU.

In conclusion, the EU’s decision to impose tariffs on grain and grain products imports from Russia and Belarus reflects its commitment to safeguarding its agricultural sector and addressing various geopolitical and economic concerns.

Get comprehensive supply chain report news updates at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#EUTariffs #GrainImports #RussiaBelarus #AgriculturalSector #FoodSecurity #EuropeanCommission #TradePolicy #HybridThreats #SupportFarmers #MarketStability #GeopoliticalConcerns #EUGrainTariffs #PriceIncrease #CerealImports #DevelopingCountries #EUTrade #SustainableAgriculture #Coldiretti #FarmersInterests #EconomicSanctions

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