The EU's agri-food trade is a cornerstone economic strength of the Union, with the sector valued at €386 billion, and EU exports at €228 billion annually. However, this sector is highly dependent on high-quality imports from outside the Eurozone. This means that our ability to enjoy something as simple as a cup of coffee depends on resilient global supply chains.
The importance of imports
Free and secure trade is essential for farmers of all scales, SMEs and consumers. The disruptions in trade following COVID-19 and the Russian invasion of Ukraine are reminders of how much we need strong and stable trade, with rising food costs as a result of these events impacting everyone in Europe. As we enter a time of increased political uncertainty, it is vital to keep in mind the importance that needs to be placed on trade relations and ensuring markets remain open and secure.
Should restrictions be introduced on trade, the negative impacts could be felt all over the EU. 40% of EU agri-food exports rely on imports of raw materials, valued at €158 billion. Should there be an increase in the price of these imported goods, no matter how small, producers and consumers will feel it through the food chain. Imports provide a huge amount of added value for producers in the EU, allowing them to offer the best products for domestic and international markets while remaining competitive and ensuring greater levels of choice on limited budgets for consumers.
Bridges, not barriers
If protectionist policies are pursued, it will be at the expense of trade, exposing EU citizens and businesses to high levels of risk in terms of choice and economic well-being. Increases in the cost of imports into the EU agri-food sector driven by policies such as tariffs between producing countries would place high pressure on producers already operating with small margins. It is, therefore, of great importance to support the continuation and advancement of trade agreements for those within the EU.
Source: Łukasz Woźniacki and CropLife Europe