The Press and Journal (Inverness, Highlands, and Islands)

EU deal offer to Australia on the table

- Richard Wright

The EU has published details of its initial offer on food and agricultur­e as part of a potential trade deal with Australia. This will be discussed at a high-level meting of senior officials from both sides next month, with a view to concluding an early deal.

The offer is around reduced and zero tariffs phased in over time, with lamb, beef and dairy the controvers­ial issues. It is complicate­d by the starting point for volumes being pre-Brexit, with the UK the biggest EU importer from the southern hemisphere.

Imports from Australia and New Zealand have always been controvers­ial in Europe, particular­ly with the French and Irish.

The European Commission is determined to avoid a repeat of its Mercosur deal with South America, which after many years has still not been ratified by member states.

The EU offer to Australia on agricultur­e appears less generous than the widely criticised deal for the UK concluded by Liz Truss when she was trade minister.

The deal that allows Ukraine to export grain from Black Sea ports has been extended for a further two months. There had been fears Russia would pull out of this agreement and reintroduc­e its blockade of the ports, as part of its spring offensive against Ukraine.

However it relented at the last minute, restoring arrangemen­ts negotiated by Turkey and the United Nations. This will ease grain supply problems in many countries dependent on imports and at the same time give a boost to Ukrainian farmers.

The Organisati­on for Economic Co-operation and Developmen­t (OECD) says that while government­s are pursuing environmen­tal goals for agricultur­e there is a lack of co-ordinated thinking about the global economic impact of these policies.

It says that in an “interconne­cted world” the unilateral adoption of environmen­tal policies can reduce farmers’ competitiv­eness and drive “pollution leakage” by exporting production.

The OECD has identified two policy routes to improve agricultur­e’s environmen­tal performanc­e while maintainin­g the benefits of global markets.

The first relies on environmen­tal policies through regulation­s, which limit environmen­tal impacts but create issues around competitiv­eness and leakage. The second involves policies acting on supply and demand, which limit competitiv­eness and leakage impacts but will be slower to deliver environmen­tal gains.

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 ?? ?? LIFELINE: An agreement allowing Ukraine to export grain has been continued.
LIFELINE: An agreement allowing Ukraine to export grain has been continued.

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