European Commissioner for Agriculture Janusz Wojciechowski spoke on Monday 26 April about the positive effects of the EU’s trade agreements with non-Member States on the EU’s agri-food sector. Free trade agreements have also helped the agricultural sector to overcome the effects of the Covid-19 pandemic, he said.
At the video conference meeting of EU Agriculture Ministers, the Commissioner for Agriculture pointed out that EU agri-food trade continued to grow in 2020, with exports reaching 184 billion euros, up 1.4% compared to 2019 (imports rose by 0.5% to 122 billion euros).
He admitted that some agri-food sectors are struggling because of the pandemic, but also because of the difficult trading environment. “We therefore remain cautious and watch the markets closely”, he added.
Regarding trade with the United Kingdom (Trade and Cooperation Agreement), agri-food exports to the former EU Member State fell by 23% in January compared to the monthly average of the last four years. European imports of agri-food products from the UK have fallen by 66% compared to the average of the last four years. “This significant drop could be due to some difficulties UK operators experienced at the EU borders relating to sanitary and phytosanitary measures and administrative formalities”, the European Commission said. Janusz Wojciechowski noted that the European Union had published statistics for February which seem to indicate a slight recovery in trade, but not yet at normal levels.
With regard to recent trade agreements, the Commissioner again defended the “very good” agreement with the Mercosur countries. In his view, the agreement safeguards the interests of the more sensitive EU sectors.
EU Ministers supported an open, sustainable and ambitious trade agenda that ensures a level playing field and support for the most sensitive sectors.
They also discussed the update of the Joint Research Centre (JRC) study on the cumulative economic effects of current and future trade negotiations on the EU agricultural sector. According to the Ministers, more regular updates and a more detailed analysis of the impact of trade agreements on different regions and sectors should be implemented.
Market situation. The EU Agriculture Ministers recalled the negative effects of frost, especially for the wine and fruit sectors.
Greece, France, Italy, Hungary and Slovenia have asked the Commission to help the affected sectors (wine, fruit). Spain has again asked the Commission to provide additional funds for wine producers.
Poland (pig meat, potatoes, poultry), Bulgaria (potatoes) and the Czech Republic (poultry) cited certain sectors in difficulty.
Commissioner Janusz Wojciechowski painted a positive picture for agricultural markets, except for wine. “We will continue to monitor the situation in the wine sector closely, especially when the impact of the recent frosts on the next harvest becomes clearer”, he said.
For the rest, the Commissioner indicated that: - the drop in EU sugar production during this marketing year will lead to a further price increase in the coming months; - the market situation for the various fruits and vegetables is positive; - the olive oil market is recovering thanks to private storage; - the situation in the meat markets is relatively good; - EU milk prices are currently well above the five-year average. (Original version in French by Lionel Changeur)