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More Expensive Food Due to EU Import Ban on Chemical Residues

Iede de VriesIede de Vries
A plan to impose stricter requirements on pesticides in imported food could raise food prices in Europe. Especially coffee and citrus fruits might become more expensive, but EU farmers could somewhat increase their own production and sales.
Stricter EU pesticide regulations may lead to higher food prices.

The European Commission is investigating tightening the allowed residues of certain pesticides on products from outside the EU. These are substances that are not permitted within the EU due to health or environmental risks, but under certain conditions residues of them may still be present on imported products.

Brussels wants to prevent substances banned within the EU from re-entering the European market through imported agricultural products. The current system can permit certain residues when they do not pose a risk to consumers. The new approach could also affect pesticides banned due to broader health or environmental hazards.

International

There is international opposition to this. Among others, the US, Canada, Brazil, and Australia have expressed concerns. The issue has also been raised within the World Trade Organization. Trade partners warn that stricter European standards could complicate access to the EU market and disrupt international trade and supply chains.

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Researchers at the European Commission recently calculated what might happen if allowed residue levels were reduced to a technical zero level. In various scenarios the same pattern emerges: the import of agricultural products declines, EU production increases, and consumers pay higher prices.

Consequences

How significant these effects will be depends mainly on the response of producers outside Europe. If foreign farmers adapt their production to the new conditions, the effects remain more limited. If they do not or only minimally adjust, the consequences for food prices and trade flows in EU countries could be considerably greater.

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Expensive Coffee

The most extreme scenario shows how large this difference can be. If foreign producers do not adjust at all, coffee could become 332 percent more expensive and citrus fruit 82 percent more costly. In that hypothetical scenario, total EU agricultural imports would decrease by 41 percent.

How strict the new rules will ultimately be is not yet decided. The Commission has not yet definitively determined which pesticides will be affected and says it will assess individual substances on a case-by-case basis. Food security and international ramifications must also be taken into account. Moreover, the proposal is still undergoing the European legislative process.

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This article was written and published by Iede de Vries. The translation was generated automatically from the original Dutch version.

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