An EU study warns of rising food prices due to pesticide restrictions

Economics

In a preliminary report, the European Commission analyzed scenarios under which new requirements for the import of agricultural products enter into force. Experts concluded that under such conditions, imports will inevitably decrease, and prices for the end consumer will rise, despite the projected growth in internal production volumes within the bloc.

The European Commission's proposal, presented in December, suggests setting maximum residue levels (MRLs) for pesticides at technically zero. This effectively means a ban on the import of goods produced using substances that are not approved within the territory of the European Union. The goal of this initiative is to simplify food safety legislation and ensure a level playing field for European farmers.

The initiative has caused concern in a number of countries, including the USA, Canada, Brazil, Australia, and Argentina. In particular, the United States Department of Agriculture stated that such an approach could destabilize supply chains, making exports to the EU virtually impossible. Canadian Minister of International Trade Maninder Sidhu noted in a letter that the proposed measures deviate from internationally recognized approaches to food risk assessment and could disrupt trade in grains, oilseeds, and pulses. Similar concerns were expressed by the Australian authorities, pointing to potential risks for their shipments of grain and plant production products.

In response to the criticism, European Commission representatives Arianna Podesta and Eva Hrnčířová emphasized that the preliminary study is only an interim stage and should not be equated with the final draft document. The officials explained that the impact of the new regulations will be assessed on a case-by-case basis for each substance. The European Commission also assured that the restrictions will not affect goods that are not produced in the EU, such as coffee, or raw materials that are critically important to the economy.

Currently, the bill is under consideration in the European Parliament and the Council of the EU. There is no consensus among the member states on this issue yet. It is expected that next month Ireland will present an updated version of a compromise solution.