European legislators endorse significant increase in customs duties on agricultural products originating from Russia and Belarus.
The European Parliament's Committee on International Trade has given a green light to a substantial hike in customs duties for specific Russian and Belarusian agricultural goods. Here's the rundown on this move, its implications, and the timeline:
What's the Lowdown on the Proposal?
- Duties Hike: Members of the committee have signed off on a 50% surge in duties for agricultural products from Russia and Belarus that were previously exempt from tariffs. Products like sugar, vinegar, flour, and animal feed will see a price bump[1][3][4].
- Fertilizer Tariffs: A 6.5% levy will be imposed on fertilizers imported from both countries, with additional duties rising from €40-€45 per tonne in 2025-2026 to €430 per tonne by 2028[1][4][5].
When's This Change Coming into Effect?
- Committee Approval: The proposal gathered 29 votes in favor, 6 against, and 2 abstentions[1][4]. The regulation should go into effect by 1st July 2025[2].
What's the Impact on the EU's Agricultural Sector and Market?
- Decreasing EU Dependency: The main goal is to lessen the EU's reliance on Russian and Belarusian agricultural goods, preventing these nations from using the EU market to fund their activities, such as the war in Ukraine[1][2].
- Protecting the EU Market: The European Commission will keep tabs on the fiscal impact on prices to safeguard the EU's internal market and agricultural sector, ensuring that the tariffs don't ultimately affect global food security[1][2].
- Boosting EU Fertilizer Production: The increase in tariffs on fertilizers is anticipated to kickstart EU fertilizer production, which currently struggles with low prices for imported goods[1].
Overall, this measure aims to strengthen EU security and strategic independence by reducing funding for Russia's war efforts, while maintaining stability within the EU's agricultural sector.
The legislation approved by the European Parliament's Committee on International Trade signifies a significant shift in politics, as the hike in customs duties for specific Russian and Belarusian agricultural goods is expected to impact the general-news landscape. This move, due to come into effect on July 1, 2025, aims to lessen the EU's dependency on these countries and safeguards the EU's internal market and agricultural sector, thereby protecting its health and ensuring global food security.
