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Last week, German Agriculture Minister Julia Klöckner supported rising meat and sausage prices to reflect the true value of food and to help boost animal welfare. According to Klöckner, prices could rise by up to 40 eurocents per kilogram (in the form of a tax on animal welfare). Meat and sausages should not become a luxury item, but higher prices should prevent everyday waste. Rising meat prices could also lead to a reduction in advertising campaigns for meat in shops. Klöckner will also support the introduction of a European animal welfare labelling system. A part of the European Parliament is also calling for a strengthening of meat prices and a reduction in meat production - Polish MEP Sylwia Spurek (S&D), who has long advocated the introduction of a meat tax, called on the Commission last week to take steps to reduce meat production, especially in intensive production companies. The MEP's call was supported by a further 31 MEPs, mostly from the Greens.
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Thirty-three countries, including Argentina, Kenya, Nigeria, Colombia and Egypt, submitted on 24/06/2020 a proposal to the World Trade Organization (WTO) Sanitary and Phytosanitary Committee to reduce EU rules on maximum residue levels (MRLs) for pesticides that restrict imports of fruit and vegetables from outside the EU for a period of 1 year. The measure should therefore help countries recover from a coronavirus pandemic.
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The United States threatens to introduce new tariffs on beer, spirits, chocolate, and olives from the EU. The imposition of duties is a US response to subsidies provided to Airbus. Last year, the World Trade Organization declared the subsidies unjustified and allowed the US to collect tariffs on EU goods, including aircraft, wine, and cheese. The US is considering new $3.1 billion a year in tariffs on 30 additional products, including beer, spirits, or chocolate, and is already applying tariffs of 15% to 25% on various EU products worth $7.5 billion in the dispute.
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French President Emmanuel Macron has approved proposals for a civil climate convention aimed at combating climate change. The proposals also include increased support for local and organic farming to strengthen French self-sufficiency and reduce the import of genetically modified proteins. Macron also refused to ratify the trade agreement with Mercosur, on the grounds that Mercosur's agricultural practices and regulations were not in line with the EU's Paris Climate Agreement.
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The European Commission presented a draft of the new budget of the European Union for 2021 on 24/06/2020. The budget should amount to €166.7 billion, complemented by €211 billion in grants and €133 billion in loans under the temporary facility for support for the recovery of the Next Generation EU. The Commission proposes to allocate €575 million from the budget to the Single Market Programme, €55.2 billion should be allocated to the Common Agricultural Policy, and a further €813 million to the European Maritime and Fisheries Fund. This budget should help European farmers and fishermen and strengthen the resilience of the agri-food and fisheries sectors. Another €47.15 billion is proposed by the Commission for Cohesion Policy, which will be complemented by €42.45 billion from the REACT-EU initiative, as proposed under Next Generation EU. The funds will be earmarked for employment subsidies, part-time schemes and measures for youth employment and the liquidity and solvency of small and medium-sized enterprises. A total of €9.47 billion should be earmarked for the Just Transition Fund to ensure that "no one is left behind" in the transition to climate neutrality. The draft budget for 2021 is based on the draft EU Multiannual Financial Framework presented by the Commission on 27/05/2020. Once the European Parliament and the Council have approved the MFF 2021-2027, including the Next Generation EU, the Commission will adjust its draft budget for 2021 accordingly.
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