Several EU agriculture ministers called on Monday 14 October in Luxembourg for the European Commission to intervene to help the sectors (wine, cheese, olive oil) that would be affected by US tariff measures in the dispute between Airbus and Boeing.
These tariff countermeasures should come into force on 18 October (see EUROPE 12348/7).
The Spanish, Italian and French Agriculture Ministers asked the Commission to try to avoid imposing sanctions as much as possible and to provide measures to compensate farmers who would be most affected by an increase in customs duties.
Phil Hogan, the Agriculture Commissioner, has acknowledged that this announcement is “bad news” and will try, including in his upcoming responsibilities as Trade Commissioner, to reach a “negotiated solution” in this dispute. “I hope common sense will prevail”, he told ministers.
Mr Hogan pointed out that the four EU Member States of the Airbus consortium (United Kingdom, France, Germany and Spain), as well as Italy and Ireland, represent nearly 97% of total food exports subject to additional customs duties amounting to €4.3 billion. The targeted products include spirits and liqueurs, wines, dairy products and olive oils, which account for 92% of total exports covered by these additional customs duties.
The products concerned are quality symbols, such as Parmigiano, extra virgin olive oil from Spain, PDO and PGI wines, Irish butter and Scotch whisky, to name a few. “We will have to closely assess the effects of the proposed tariffs, which reach well over 25%”, said Mr Hogan.
Market measures and promotion. The CAP provides for market management instruments (including private storage). “We will carefully assess the situation in the near future, when we have more information on the impact of the measures on farmers, and we will consider whether to apply market measures, if necessary”, the Commissioner explained.
Product promotion can also help in times of trade difficulties. In addition, a call for proposals for promotional actions in non-Member States will be launched in January.
As far as wine is concerned, the EU already contributes substantially to the promotion of EU wines in third countries through national support programmes.
The Spanish minister said that the trade war “is not beneficial to anyone” and stressed the need to avoid these customs duties as much as possible.
For Italy, whose cheese sector will be affected (€4 billion per year), certain fruits, alcoholic beverages and pigmeat, the Commission “must intervene and help these companies”, in particular through promotion and compensation measures.
For the French Minister, all CAP instruments must be mobilised to provide a response. The wine sector would be affected (several hundred million euros per year). France has called for a “firm and united European response”. Among the measures to be taken, France mentioned the promotion of wine and the measures of the common market organisation.
Several countries referred to the fact that the EU will also be able to decide on sanctions in 2020.
Ministers from several countries (including Greece, Portugal, Hungary, Denmark, United Kingdom, Germany, Netherlands) supported the concerns expressed by France, Italy and Spain.
However, the Netherlands stressed the need to avoid taking compensatory measures that would also create distortions of competition. Germany supported compensatory measures, but only in the event of major market disruptions. Portugal has also supported EU intervention measures, “but with great caution”. (Original version in French by Lionel Changeur)