Agriculture benefits from free trade

According to a new European study published on Tuesday, January 26, the EU's trade agenda is having a positive impact on the agri-food sector. Trade agreements are expected to provide a significant increase in agricultural exports and a more limited increase in imports. On balance, this results in a positive trade balance.

Exports of agricultural products would increase by 25% in the conservative scenario, while imports only increase 10%. That represents a value of €4,7 billion in exports and €3,7 billion in imports.

In the ambitious scenario, the increase in exports and imports is €5,5 billion and €4,7 billion respectively. A comparison between the 2016 and 2021 studies shows that tariff quotas are effective in mitigating the impact on sensitive sectors such as beef and sugar. The new study can thus serve as a factual basis to underline the importance of tariff quotas in ongoing negotiations.

Good name
Agriculture Commissioner Janusz Wojciechowski believes the research results demonstrate the competitiveness of European agriculture. He thinks this is due to the reforms of the common agricultural policy and the reputation of EU products in the world. "This study, with more positive results than in 2016, confirms that our ambitious trade agenda is helping EU farmers and food producers to make the most of opportunities abroad, while also providing adequate safeguards for the most sensitive sectors".

The study was conducted by the Joint Research Center (JRC). It looked at the effects of 12 trade agreements on the agri-food sector up to 2030. The study is a follow-up to a study done in 2016. The study compares a conservative and ambitious scenario with a reference scenario of 'Business as usual'. The difference between the scenarios is the degree of tariff liberalization and reduction of duties.

Jurphaas Lugtenburg

He is a market specialist in grains and other agricultural commodities at DCA Market Intelligence. He also focuses on onions, potatoes, and roughage. Jurphaas also runs an arable farm in Voorne-Putten (South Holland).

j.lugtenburg @boerenbusiness. Nl

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