Analyst: ag exports could be affected by EU ‘Green Deal’
California exports $4.7 billion in almonds, $1.7 billion in pistachios, $1.2 billion in wal- nuts, and $832 million worth of rice. The state also ships $1.1 billion worth of wine abroad every year. Even before the European Green Deal, the EU enacted pesticide and MRL policies that could complicate and restrict export markets, Oliveira said. “They started using a hazard-based methodology,” Oliveira said. “When the EU is reviewing a chemical, they look to
adopted MRL standards in 2008, and China in 2010. “When there is an MRL change, the transition period is usually six months, which is not enough to cover products like wine,” Oliveira said. “We need to make sure that products that were treated legally remain legal.” She said a transition period is important for California farmers because many of the state’s leading export products are har- vested months or years before consumers use them.
By Bob Johnson An entirely different layer of pesticide regulations could eventually challenge California growers who want to export their products. That is the cautionary warning of Bryant Christie Inc., an international market ac- cess and foreign government affairs con- sulting firm. Alinne Oliveira, the firm’s deputy di- rector for global access, says a European Union policy directive—part of the EU’s “Green Deal”—could impact farm ex- ports by bringing about new pesticide residue standards. EU pesticide-reduction goals, endorsed by the European Commission, seek dra- matic reductions by 2030 in applications of pesticides and other chemical treatments on agricultural crops. “The European Green Deal calls for a 25% reduction in pesticides, a 20% reduc- tion in fertilizer and conversion of 25% of their agricultural land to organic produc- tion by 2030,” Oliveira said. “They want to make sure other countries also adopt the European policy, which could especially impact developing countries.” Oliveira made her remarks during the annual Sustainable Ag Expo and International Sustainable Winegrowing Summit in October. The event was spon- sored by the Central Coast Vineyard Team in San Luis Obispo County. Bryant Christie consults with growers who export, with a particular emphasis on pesticide and allowable maximum residue levels, or MRLs. They can vary from coun- try to country and change with little notice, Oliveira said. While the EU pesticide reduction goals are aspirational, the European Commission has approved a seven-year budget to sup- port European Green Deal programs. Oliveira said the EU’s considerable eco- nomic power could result in aggressive environmental standards in many parts of the world. If so, she said, a farmer could follow all the label regulations for apply- ing a material in California and meet the residue standards yet still have products rejected by important export markets. “If you are a grower and exporter, you can follow the label and do everything right,” Oliveira said. “But at the end of the day, if that crop is exported to a market where they have a different standard than the U.S., you may be faced with a challenge of not being able to export to that specific market. For some commodities like wine, it is really important to keep track of all the MRL changes.” The MRL issue is important for California farmers because export markets account for a large, increasing share of the state’s agricultural production. California farmers exported $20.8 billion in goods in 2020, up from $14.8 billion a decade earli- er, according to California Department of Food and Agriculture statistics. The basic international MRL standards are published in Codex Alimentarius,
which is jointly published by the United Nations Food and Agriculture organization and the World Health Organization. In 1999, the issue of international standards became more complex after Taiwan adopted its own national MRL list. Japan followed with a national list in 2006.Canada and the European Union
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November 9, 2022 Ag Alert 5
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