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The EU and New Zealand concluded a free trade agreement on 30/06/2022. Negotiations on the agreement lasted a total of four years, the agreement also includes obligations around sustainability and basic labour rights. As a last resort, these obligations can be enforced through trade sanctions. For the first time ever, the EU trade agreement contains a special chapter dedicated to sustainable food systems, according to which the two sides will cooperate in the field of animal welfare, sustainable food production, pesticides and fertilizers. The agreement also includes a specific article on trade and gender equality and specific provisions on trade reform and fossil fuel subsidies. Bilateral trade is expected to grow by up to 30%, with annual EU exports potentially increasing by up to €4.5 billion. Under the provision, tariffs on key EU exports such as pork, wine and sparkling wine, chocolate, confectionery and biscuits will be lifted from day one. The bilateral agreement will protect the entire list of high-quality EU wines and spirits (almost 2,000 names), such as Prosecco, Polish vodka, Rioja, Champagne and Tokaji.
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On 28/06/2022, the European Commission published a monthly report on the development of trade in agricultural and food products. The total value of EU trade increased by 12% in March 2022 compared to March 2021 and by 13% compared to February 2022 to €32.6 billion. The EU continues to benefit from trade in agricultural products with a trade balance of €5.3 billion. The Commission’s report focuses especially on the impact of Russia's war in Ukraine on agri-food trade in March 2022 and compares March 2022 with February 2022. In March 2022, imports of Ukrainian sunflower oil fell by 10%, maize by 37% and canola by 29% in compared to the same period a year ago. Wheat imports into the EU decreased by 77% compared to March 2021. A significant decrease in Ukrainian wheat exports was recorded with their main partners worldwide, to Egypt by 26% year-on-year, to Yemen by 55%, no wheat trade was recorded to Lebanon, Libya, or Nigeria.
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On 22/06/2022, the European Commission adopted legislative proposals for a directive on the sustainable use of pesticides. The Commission proposes legally binding targets at European Union level as well as legally binding targets at Member State level. At EU level, pesticides should be reduced by 50% by 2030 (chemical pesticides and the risks associated with their use, including more dangerous pesticides). Member States will need to set their own mandatory reduction targets within clearly defined parameters, as well as their own strategies, to ensure that EU-wide targets are met collectively. When setting those national targets, Member States should have the flexibility to consider their national situation, including historical progress and the intensity of pesticide use. This must be done within the limits of a defined mathematical formula. While allowing target setting to be guided by the national situation, in no case may the national target be lower than 35% to ensure that the use of pesticides is restricted by all Member States. After examining Member States' targets, the Commission may recommend that they be more ambitious in certain cases. The Commission may also take further action if national targets are considered insufficient to reach the 50% limit at EU level by 2030.
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On 22/06/2022, the European Commission adopted legislative proposals on the restoration of damaged ecosystems and the recovery of nature throughout the European Union, from agricultural land and seas to forests and the urban environment. The objectives of the new legislation should be met by 2050. Legislative proposals in the field of nature restoration are the first European legislation specifically aimed at restoring European nature, revitalizing 80% of European habitats and restoring nature to all ecosystems, from forests and agricultural land to marine, freshwater and urban ecosystems. Each Member State will be required to comply with legally binding ecosystem restoration targets, which will be complemented by existing legislation. Member States will also need to develop national nature recovery plans, in close cooperation with scientists, stakeholders and the public, to help meet the objectives set while maintaining flexibility regarding national conditions.
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On 22/06/2022, the European Commission presented a new plan to strengthen the contribution of EU trade agreements to climate protection, the environment and labour rights worldwide, with a view to integrating sustainability into trade agreements with third countries. The new plan should strengthen the implementation of the trade and sustainable development (TSD) chapters in the bloc's trade agreements. The plan sets out several action points concerning, inter alia, partner countries' engagement on results and priorities, compliance with international labour and environmental standards, monitoring and implementation of commitments under the Sustainable Development Directive. The new rules should open new markets for the import and export of organic goods, services and raw materials. The role of the civil society should also be strengthened.
More information is available here.