The Joint Research Centre said lowering MRLs on imported food could lead to higher prices of citrus, grapes and other products
European consumers may soon be forced to pay more for their table grapes, citrus and coffee if the EU presses ahead with plans to tighten limits on the residues of banned pesticides on imports.
A study by the European Commission’s in-house think-tank, the Joint Research Centre (JRC), found that lowering maximum residue levels (MRLs) for imported food and feed to the limit of quantification (LOQ) could lead to a 41 per cent drop in imports and higher consumer prices across the bloc.
The study identified 18 most hazardous active substances not approved in the EU, with MRLs above the LOQ affecting 235 commodities and 86 exporting countries. The impact on prices depends on a succession of market reactions. If a producer outside the EU uses a substance targeted by the new rules, they can change the pesticide, modify the timing of treatment to avoid residues, separate production intended for the European market, or abandon exports to the EU.
The JRC analysed three scenarios for the study. The intermediate scenario suggests that total agricultural imports of the EU would decrease by 8 per cent, while consumer prices for table grapes and citrus would increase by 6.5 per cent and 5.6 per cent respectively.
The best-case scenario – in which it cost less for exporters to adapt and only the production for which residues have been detected is affected – points to a 0.4 per cent drop in imports and price increases of below 1 per cent.
Under the worst-case scenario — in which the non-EU producers don’t adjust to the rules — the JRC says price hikes could be as high as 82 per cent for citrus, while EU agricultural imports would decline by 41 per cent overall.
The Commission has not yet decided to simultaneously introduce the new limits. The study will contribute to the impact assessment that must precede any potential measures.
The proposed residue ban is popular with European farmers who have long argued for a level playing field with third-country growers. But critics argue that it clashes with global trade rules as it essentially imposes EU rules on foreign producers. They say the ban goes beyond existing health protections and ignores the reality that growers around the world face different pests, climates and farming conditions.
Amine Bennani, president of the Moroccan Association of Berry Producers, told Politico: “The choice is between berries that are available all year round – healthy, safe and at a fair price – or limited production at a high price”.
He said the proposal amounted to a trade barrier that would affect 250,000 Moroccans working in the sector.
South African fruit farmer association Hortgro and the South African Table Grape Industry have raised similar concerns, along with Honduran melon growers and California almond producers.
The Commission said its aim is to prevent the most hazardous substances – banned for use in the bloc – from re-entering the EU through imports altogether by lowering their residue limits to a technical zero.
The Commission has yet to set out which banned pesticides would be covered by the measure. However, the JRC study identified 18 active substances that could be subject to the residue ban, affecting 235 commodities and 86 countries.
Commission spokesperson Eva Hrnčířová told Politico that any action “would take into account the importance of preserving the EU’s food security and possible international implications”.
