INTERVIEW: EU taking 'concrete actions' to protect farmers' interests: EC

The European Commission is in the process of drawing up measures to protect farmers' interests, according to Olof Gill, the European Commission spokesperson of agriculture, speaking in an interview with S&P Global Commodity Insights.

Farmers across Europe have been protesting since the end of last year amid low profits, as well as what they term unfair competition from Ukrainian imports, and unfavorable EU agricultural and climate policies. However, the protests have intensified recently, with some farmers blocking roads and border crossing points with Ukraine.

The EC adopted the "partial derogation to GAEC 8" standards on Feb. 12 as requested by many EU nations in response to farmers' concerns of conditionality requirements, Gill said.

GAEC 8 -- one of the bloc's "good agricultural and environmental conditions" standards -- requires farmers to keep certain areas of fallow lands non-productive.

Nevertheless, the EC sees agriculture and environment protection policies going hand in hand, Gill said.

In this regard, the EC has recently proposed to review certain provisions of the Common Agricultural Policy related to conditionality and its strategic plans. This will reduce burden related to controls and will facilitate compliance with certain environmental conditionalities, he said.

In addition, the EC has prepared a "reflection paper outlining several ideas to improve the position of farmers in the food supply chain and their fair remuneration" to respond to all concerns raised by farmers.

The current CAP introduced significant subsidiarity for farmers, however, its proper implementation is up to the respective nations, Gill said.

Ukraine support

Since the start of Russia's war against Ukraine, supporting the latter's capacity to export agri-food products has been an EU priority, given the sector's systemic importance for the Ukrainian economy, the EU spokesperson said.

"For this reason, the EU has put in place a duty-free, quota-free regime for Ukrainian imports, and invested heavily in improving EU-Ukraine trade infrastructure and transport routes," he added.

With this trade support, Ukraine was able to supply agricultural products to Europe and elsewhere, after Russia damaged its crucial Black Sea ports.

However, since the introduction of the duty-free regime, some EU nations, especially those bordering Ukraine, have raised concerns regarding imports of certain sensitive products, highlighting that this may adversely affect their national produce.

Gill said that the EU is "mindful of the concerns" raised by its nations and the agricultural sector. "Accordingly, the renewed ATMs proposal contains a reinforced safeguard mechanism to ensure quick remedial action in case of significant disruptions to the EU market," he said.

The EC continues to monitor the flow of agri-food exports from Ukraine into the EU, while remaining in regular contact with Ukrainian authorities as well as those from the five EU member states geographically close to Ukraine, he added.

Talks with 'high-risk' nations

"The commission will engage in a specific dialogue with all countries that are, or risk to be classified as high risk (prior to making the classification), with the objective to reduce their level of risk," Gill said, with regard to EU deforestation regulation. "This will ensure there will be no sudden announcement of risk status and will allow for more in-depth discussions."

The EU deforestation regulation (EUDR), effective from Dec. 30, 2024, aims to prevent commodities associated with deforestation (after 2020) entering the EU market. Under this regulation, the EC will establish a three-tier benchmarking system classifying commodity-producing countries as low, standard or high risk.

After EUDR application, shipments from high-risk countries will be subject to enhanced scrutiny from competent authorities (9% of operators sourcing from high-risk areas). Therefore, drastic changes of supply chains are not warranted or expected, Gill said.

Moreover, the EC will monitor trade patterns of relevant commodities and relevant products included in scope to identify any possible effects once the EUDR enters into application.

"By June 30, 2028 and at least every five years thereafter, the EC shall carry out a general review of this regulation," he said.