Latest news with #KateAbnett
Yahoo
2 days ago
- Business
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EU open to lowering tariffs on US fertilisers in trade talks
By Kate Abnett BRUSSELS (Reuters) - The European Union is open to lowering tariffs on U.S. fertiliser imports as an offer in trade talks with the Trump administration, but will not weaken its food safety standards in pursuit of a deal, EU agriculture commissioner Christophe Hansen told Reuters. "That is definitely an option," Hansen said, of reducing U.S. fertiliser tariffs. "That will be on the table. And I think that would be a huge way forward, and an offer as well to the U.S.," he said in an interview with Reuters on Thursday, adding that whether that would mean zero tariffs, or a reduction of current rates, would need to be negotiated. U.S. exports face the EU's standard tariffs of 5.5% on imports of ammonia, and 6.5% on nitrogen fertilisers, as well as an extra 29.48 euro-per-tonne anti-dumping duty on U.S. urea ammonium nitrate (UAN). UAN comprised around three quarters of EU imports of U.S. fertilisers last year, EU trade data shows. Reducing tariffs could boost Europe's purchases of U.S. fertiliser, to fill a gap as the EU cuts supplies from Russia. Around 24% of the EU's nitrogen fertiliser imports came from Russia in 2023, while the U.S. accounted for 8%, EU data shows. "I believe most of the Europeans would prefer buying fertilizers from the U.S. than from Russia," Hansen said. The EU will hit nitrogen-based fertilisers from Russia with tariffs rising to 100% over three years, a level that would effectively halt annual trade flows currently worth 1.3 billion euros ($1.5 billion). Hansen said the EU was also open to discussing increasing its purchases of hormone-free beef from the U.S., and a deal to have zero-for-zero tariffs on EU and U.S. wines. But he said the bloc would not compromise on its stringent food safety standards as it seeks a deal. "I don't see room for manoeuvre to roll back our high quality standards. But of course, on other points, on other products, we are very open to negotiations," Hansen said.
Yahoo
2 days ago
- Business
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New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions
By Kate Abnett BRUSSELS (Reuters) -The European Union and Ukraine are negotiating a new deal that will set import quotas on agricultural goods from Ukraine somewhere "in between" current levels and the temporary exemptions granted after Russia's 2022 invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal - in which Brussels is seeking to strike a balance between supporting Ukraine in its war with Russia, and heeding European farmers' concerns about cheaper Ukrainian imports. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under the wartime tariff exemptions have undercut local supplies. The EU triggered "emergency brakes" to re-impose quotas on products including sugar and eggs in the past year, in response to surging imports. The EU's Ukrainian sugar imports soared to 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, far exceeding the pre-war quota of 20,000 tons. Hansen said the new quotas on sugar would be "significantly higher" than those under the pre-war arrangements. "I think we can absorb a certain amount of those products," he said, while noting sensitivities around sugar, poultry and eggs. Negotiations on the new EU-Ukraine deal started on June 2. Hansen said it was feasible a deal could be reached by summer. "It depends now on both sides, I think technically that could be feasible," he said. Agricultural goods accounted for about 60% of Ukraine's total exports last year, with the EU buying around 60% of those goods, worth about $15 billion. A senior Ukrainian lawmaker said last month the loss of tariff-free access to the EU market could cost the country 3.5 billion euros ($3.99 billion) in annual revenue. "Our solidarity with Ukraine is as firm as ever, and therefore we are very committed to deliver this agreement as quickly as possible," Hansen said. The pre-war quota regime, which applies as of Friday, also includes lighter rules on import licenses for some goods like poultry and eggs, where instead of requiring licenses, quotas will be allocated on a first-come, first-served basis. ($1 = 0.8763 euros)
Yahoo
3 days ago
- Business
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EU could approve Mercosur deal by summer, agriculture chief says
By Kate Abnett BRUSSELS (Reuters) -The European Union could approve its planned trade deal with South American bloc Mercosur before summer, but it has not yet fixed a date to do so, EU agriculture commissioner Christophe Hansen told Reuters on Thursday. "It could be before summer," Hansen said in an interview. EU nations still need to approve the deal, which was finalised in December but has faced opposition from members including France, which argues that the pact would hurt European farmers who face stricter norms and regulations than their South American peers. French President Emmanuel Macron and Brazil's President Luiz Inacio Lula da Silva discussed their differences on the pact at a meeting in Paris on Thursday. Macron said the text could be improved with the insertion of mirror clauses. France has previously argued for the insertion of an emergency break clause to restrict imports if a sudden surge in imports destabilises certain EU markets. "This would indeed require that we go back to the table and reopen. I don't think that this would be helpful in this situation," Hansen said of the idea of resuming negotiations with Mercosur countries to add new safeguards to the deal. "I see from many different parts of the agriculture and food sector, they are really looking for having these new opportunities," he added.
Yahoo
6 days ago
- Business
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Britain facing race to avoid $1 billion in EU carbon tax costs
(Removes timeframe from paragraph 2) By Susanna Twidale and Kate Abnett LONDON/BRUSSELS (Reuters) -Britain will struggle to link its carbon market to the EU's in just seven months, to avoid UK companies facing the bloc's carbon border tariff and annual bills around 800 million pounds ($1.08 billion) from next year, market experts have said. Billed as part of a "reset" in relations after Britain's 2016 exit from the European Union, the two sides announced last month they will link their carbon emissions trading systems. As the issue is they havent given a timeframe, but need to do it by the end of the year to avoid the border tax. But neither side has set a timeframe or detailed the work that must be done to make this happen before January, when Europe's carbon border tax kicks in. "It's probably still likely to take many years before linkage takes effect. The earliest is 2028, but it's more likely to be 2029 or even 2030," said Ben Lee, senior emissions analyst at Energy Aspects. The UK government said a key upside of linking to the EU's carbon market, or emissions trading system (ETS), is to avoid businesses being hit by the EU's carbon border tariff - which, starting next year, will impose fees on the CO2 emissions associated with imports of steel, cement and other goods. The UK government said avoiding these costs would save 800 million pound a year. But EU officials say to get exempted from the carbon border levy, Britain would need to have linked its carbon market to the EU's. "Full linkage will take several years given the complexity of the process, purely from a technical perspective," ClearBlue carbon market analyst Yan Qin said, adding that an "optimistic" scenario could see the link forged in 2027. A spokesperson for the British government said it will seek to agree a carbon market link as soon as is feasible. "We will not provide a running commentary on the progress of negotiations," they said. TECHNICAL HURDLES To make a link happen, the UK needs to adjust its national rules for issuing carbon trading permits, bring its emissions permit auctions in line with EU rules, and change its national cap on how much companies covered by the carbon market can emit. That's not all. The EU and UK schemes are also not yet aligned on how many free CO2 permits they give industries. And the EU carbon market has a special "reserve" which adds or removes permits from the market to help stabilise prices. Britain's scheme currently lacks a "reserve", though it has a cost containment mechanism that can act as a ceiling on prices, something the EU scheme does not have. "Resolving the question of a supply adjustment mechanism will likely be one of the technical calibrations that will need to be in place before the two systems can link," said Veyt senior analyst Ingvild Sorhus. Some businesses argue these issues are technically straightforward to resolve. "With the right political will, an ETS linking agreement between the EU and UK could be signed within 6 months, and operational by 2028," said Alistair McGirr, Head of Policy and Advocacy at British energy firm SSE. Industry group Energy UK said linkage negotiations could conclude within a year - but that Britain should seek an exemption from the EU carbon border levy until the link is sealed, in case talks drag into 2026. "It is a question not of major political roadblocks, but primarily of technical processes ... I'm not saying these are small problems, but they are simply not intractable problems," Energy UK Policy Director Adam Berman said, of the changes needed to allow the link. The UK plans to launch its own carbon border tariff a year later, in 2027. Brussels may be in less of a hurry. Britain's carbon market is less than a tenth of the size of the EU's, so a link would see British businesses gain access to a much more liquid market. The upside for the EU is less clear - although EU officials cite the bloc's aim to expand carbon pricing internationally, to ensure as many countries as possible put a price on greenhouse gas emissions. Companies also say the move would avoiding competitive distortions and reduce costs for both EU and UK consumers. Pascal Canfin, a French lawmaker in the European Parliament, said the upsides for Britain were more obvious than for the EU. "It's a political move," said Canfin, of the EU's motivation. "The UK was within [the EU] ETS before. I mean, it's not such a big deal to have it again." ($1 = 0.7387 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
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EU changes to sustainability law risk company lawsuits, legal scholars say
By Kate Abnett BRUSSELS (Reuters) -The European Union's plans to cut back sustainability reporting rules could expose European companies to more climate change-related lawsuits, 31 legal scholars said in a letter published on Friday. The European Commission in February proposed loosening corporate sustainability rules for businesses in Europe, responding to criticism that EU red tape hinders competitiveness with rivals in China and the United States. Among the changes, the EU would delete a requirement in its due diligence law for large companies to put into effect a "transition plan" to ensure they comply with the EU's targets to cut greenhouse gas emissions. Companies would still need to have such a plan, but would not be legally obliged to put it into practice. "Mere paperwork, instead of good faith action, would suffice in meeting the obligation," the legal scholars said in the letter. "The absence of a binding regulatory framework will correspond directly with increased liability risks for private actors," they said, referring to potential court cases from plaintiffs citing risks to the environment and public health. The letter's 31 signatories included Thom Wetzer, Associate Professor of Law and Finance at the University of Oxford, Christina Eckes, Director of the University of Amsterdam's Centre for European Law and Governance, and Wolf-Georg Ringe, Director of the Institute of Law and Economics at the University of Hamburg. The academics cited said court cases highlighted the climate-related legal risks businesses already face, citing pending cases against companies including TotalEnergies and Eni, from plaintiffs demanding the firms align their corporate actions with climate goals. A European Commission spokesperson declined to immediately comment on the letter. The Commission has previously said its proposals would make life easier for businesses while keeping the EU on track for its targets to cut CO2 emissions. The plan must be negotiated by the European Parliament and member states - a process that can take more than a year. European businesses have long said strict regulations hampered their ability to compete globally, with U.S. President Donald Trump's aggressive deregulation drive increasing calls for Brussels to act. Campaigners have criticised the EU plans to soften sustainability rules as gutting corporate accountability.
