EUto improve check on cheap grain imports
EUto improve check on cheap grain imports
THE EU is planning to improve protection against cheap grain imports to avoid a "total breakdown" of internal markets.
At a meeting in Spain on Monday, farm commissioner Franz Fischler admitted the system used to calculate import duties was not working properly and needed to be changed.
Succumbing to pressure from farmers across Europe, he said he would use the forthcoming mid-term review of Agenda 2000 to look at improving the way import duties are worked out, to take account of new exporters like the Ukraine.
Tariffs are currently based on the difference between US markets and 155% of the intervention price.
However, this season US prices have been about £20/t above EU values, so tariffs have been minimal, allowing a flood of cheap imports from the Black Sea to depress internal prices.
Dr Fischler said it was too early to say how or when the system would be changed. He also did not address potential problems it could cause under World Trade Organisation agreements. "We are reflecting and for the time being its only clear we have to do something."
Paul Ibbott, chief arable adviser for the NFU, said a minor restructure would be best as there may be no need to get WTO agreement.
He recommended a weighted basket mechanism, whereby reference prices would be taken from a number of countries to reflect more accurately import values.
"That would increase the import tariff which would level off any further price falls and hopefully lead to price rises."
Meanwhile, old crop wheat continues to weaken amid ongoing confusion on the London wheat futures market following Vikings collapse (Business, Apr 26). Feed wheat for spot movement has fallen about £2 to £64/t ex-farm, while much-needed rain has forced new crop values down to new contract lows at about £60/t for November. *