News

The World Trade Organization (WTO) warned against the effects of coronavirus on world trade on 08/04/2020. The WTO expects a 13-32% fall in world trade, and world trade could only be fully restored in 2021, if countries cooperate. In fact, according to the WTO, all countries should face a trade drop of more than 10% this year. According to the WTO, the effects of coronavirus could therefore be worse than that caused by the Great Recession in 2009, when the world trade fell by 12.5%.
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France asks the European Commission to use the instruments of the Common organisation of the markets (CMO) in agricultural commodities to address the market imbalance that has arisen. The current restriction on international trade may result in a shortage of imported food and a surplus of local production. The establishment of food stocks, as provided for in European legislation, would, according to France, prevent prices from falling and excessive food waste. French Agriculture Minister Didier Guillaume also called on the Commission to introduce market measures, including a private storage scheme for dairy products, to help the sector during the coronavirus crisis. The German Minister of Agriculture, Jula Klöckner, also called on the Commission to introduce measures to stabilize the situation on agricultural markets, including the private storage regime.
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On 02/04/2020, the European Commission presented new measures aimed at helping the agri-food sector to allow for a prompt response to the crisis, in the form of the Coronavirus Response Investment Initiative Plus (CRII+) and the new instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE), which should amount to up to €100 billion in total. The SURE instrument should provide loans based on guarantees provided by Member States, should allow for shorter working hours while ensuring the salaries of employees. The SURE instrument also seeks to mitigate the effects of the crisis on the agricultural sector and the food chain - the Commission proposes to introduce extra flexibility and simplification for the use of the European Structural and Investment Funds, including the European Agricultural Fund for Rural Development. CRII + should support farmers, rural areas and EU Member States through enhanced flexibility in the following areas: use of financial instruments (farmers and other beneficiaries should be allowed to use loans or guarantees up to EUR 200,000 on favourable terms such as very low interest rates or favourable repayment schedules); reallocation of funds (Member States should be allowed to use unspent funds from rural development programs, but will not have to return them to the EU budget, but the money will still need to be used for the relevant rural development program); the possibility of postponing the submission of annual reports. Under CRII +, the Commission has already allowed the postponement of applications for direct payments until 15/06/2020, and there should also be an increase in payment advances (increase in advances for direct payments from 50% to 70% and for rural development payments from 75% to 85%, available from 16/10/2020). Furthermore, the Commission plans to limit physical on-the-spot checks.
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On 03/04/2020, the European Commission and the European Investment Bank (EIB) announced the launch of a new financing initiative that aims to unlock close to €1.6 billion of investment in the agriculture and bioeconomy sector. The financing aims to support private companies operating throughout the value chains of production and processing of food, bio-based materials and bioenergy. The programme will contribute to safeguard and create employment in rural areas and therefore promote rural development and territorial integration across the EU. The programme is a continuation of the first €400 million agriculture and bioeconomy programme loan that was launched in 2018 and is nearly fully committed.
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The European Commission issued Implementing Regulation 2020/466 of 30 March 2020 on temporary measures to contain risks to human, animal and plant health and animal welfare during certain serious disruptions of Member States’ control systems due to coronavirus disease. The Regulation strengthens Member States' flexibility in carrying out controls in the agri-food chain in order to prevent the spread of coronavirus through the movement of controllers and to facilitate the transport of animals, plants, food and feed within the EU.
More information is available here.