On Wednesday 1 August, the European Commission published its first report on the evolution of trade in soybeans from the United States to the EU.
In a press release, the Commission announced the establishment of a twice-monthly reporting mechanism on the evolution of this trade, the "first concrete follow-up" to the EU-US joint statement agreed in Washington on 25 July between Commission President Jean-Claude Juncker and US President Donald Trump. They had agreed on an increase in trade in soybeans (see EUROPE 12071).
These reports will be the European Commission's twice-monthly contribution to the executive working group set up by Juncker and Trump. The working group began its work this week, with the two presidents' main advisers being in regular contact to determine the best way to implement the presidents' joint statement, the Commission stated in a press release.
And the initial figures on soybean trade should be pleasing to Trump. Between July 2017 and July 2018, EU imports of US soybeans increased by 283%. They now represent 37% of European imports, compared with 9% a year ago. Since the beginning of July, 360,000 tonnes have been imported into the EU from the US.
Similarly, imports of soymeal, which are traditionally lower with regards to the US, are also on the rise: 185,000 tonnes were imported in July 2018 – in other words, an increase of 3,337% compared with July 2017 (13% of EU soymeal imports compared with 0.3% a year ago).
This rise is due to market rules. "The market conditions are favourable" to the rise in US imports, Commission spokesperson Mina Andreeva stated. "China has imposed customs duties on soybeans coming from the US. American exports will be re-directed to the EU and as there is a large quantity, prices will go down", she said. "US prices of soybeans and soymeal are currently more competitive on the market and thus constitute a very attractive option for European importers and users", the Commission added in a press release.
According to the Commission, the EU currently imports around 30 million tonnes of soya per year because it cannot produce sufficient quantities. (Original version in French by Camille-Cerise Gessant)