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FARMING

Russia import ban could cost Denmark billions

Russia's announced ban on the import of food products from the EU has the potential to severely impact the Danish agriculture sector, particularly if the ban extends to meat and dairy products.

Russia import ban could cost Denmark billions
Food sector exports to Russia brought in nearly six billion kroner in 2013. Photo: Colourbox
Vladimir Putin’s announced one-year ban on food and agricultural imports from countries that imposed sanctions on Russia has the potential to cost Denmark billions of kroner. 
 
Putin on Wednesday imposed one-year bans and limits on food and agricultural imports from nations that have imposed sanctions on Russia over its aggression toward Ukraine.
 
The impact on Denmark could be significant. In 2013, Denmark’s total exports to Russia accounted for 12 billion kroner ($2.2 billion). That corresponds to two percent of Denmark’s total exports and makes Russia Denmark’s 13th largest market. 
 
Among Denmark’s most important export areas to Russia is the food sector, which accounted for 5.76 billion kroner in 2013, counting agricultural technology. 
 
According to the Kremlin, food products will be directly targeted by the ban. The Kremlin’s statement said that Putin's executive decree "either bans or limits… the import into the Russian Federation of certain kinds of agricultural products, raw materials and food originating from countries that have decided to adopt economic sanctions against Russian entities and (or) individuals."
 
Russia will reportedly publish a full list of banned products by Thursday evening but sources have reported that the list will include all fruits and vegetables produced in the 28 EU nations. According to Reuters, Russian PM Dmitry Medvedev said meat, fish and dairy would also be banned. If that is the case, the impact on Denmark could be much more severe. 
 
According to figures from the Danish Agriculture and Food Council (Landbrug & Fødevarer), fruits and vegetables only account for a small percentage of Denmark’s agricultural exports to Russia. The biggest export by far is pork, which accounted for half of the total 4.3 billion kroner food export total to Russia in 2013. Fruits, nuts and vegetables only accounted for a combined seven million kroner. Dairy products however accounted for 686 million kroner, while Denmark exported 284 million kroner worth of fish to Russia and beef products totaled 178 million. 
 
Landbrug & Fødevarer said that it was worried about “the potentially serious situation” created by Russia’s announced ban and is eagerly awaiting the final list of banned products.

 
“It will be very serious, also for the Danish food sector, if Russia forbids or limits the import of agricultural products. For now, we are awaiting a concrete list showing which nations and which products will be covered by the ban,” Landbrug & Fødevarer’s administrative director, Søren Gade, said in a statement. 
 
Danske Bank analyst Steen Bocian agreed that it was hard to predict the impact on Denmark until the final list is produced but said that it might not be as bad for Denmark as it looks.
 
“Many of the items that can’t be sold on the Russian market will be sold in other markets,” he told Ritzau.

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POLITICS

France vows to block EU-South America trade deal in current form

France has vowed to prevent a trade deal between the European Union and the South American Mercosur bloc from being signed with its current terms, as the country is rocked by farmer protests.

France vows to block EU-South America trade deal in current form

The trade deal, which would include agricultural powers Argentina and Brazil, is among a litany of complaints by farmers in France and elsewhere in Europe who have been blocking roads to demand better conditions for their sector.

They fear it would further depress their produce prices amid increased competition from exporting nations that are not bound by strict and costly EU environmental laws.

READ ALSO Should I cancel my trip to France because of farmers’ protests?

“This Mercosur deal, as it stands, is not good for our farmers. It cannot be signed as is, it won’t be signed as is,” Economy Minister Bruno Le Maire told broadcasters CNews and Europe 1.

The European Commission acknowledged on Tuesday that the conditions to conclude the deal with Mercosur, which also includes Paraguay and Uruguay, “are not quite there yet”.

The talks, however, are continuing, the commission said.

READ ALSO 5 minutes to understand French farmer protests

President Emmanuel Macron said Tuesday that France opposes the deal because it “doesn’t make Mercosur farmers and companies abide by the same rules as ours”.

The EU and the South American nations have been negotiating since 2000.

The contours of a deal were agreed in 2019, but a final version still needs to be ratified.

The accord aims to cut import tariffs on – mostly European – industrial and pharmaceutical goods, and on agricultural products.

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