Brussels: The ongoing conflict in the Middle East is exerting significant pressure on the European Union's economy, particularly affecting the agricultural sector, according to Christophe Hansen, the EU's Commissioner for Agriculture and Food. Farmers across the EU are already grappling with several challenges, including declining profitability, intense international competition, and increasing bureaucratic hurdles. The war in Iran is exacerbating these issues by driving up fertiliser costs, a critical concern for the agriculture industry.

According to France24.com, Hansen explained that the EU's dependency on imports, especially oil, LNG, and fertilisers, is a vulnerability. The disruption in trade flows due to the conflict has halted production sites in the affected region, creating problems for the EU's agricultural sector. Fertiliser prices have surged by 60% since 2020, putting additional strain on cereal producers. Hansen emphasized the need for sustainable solutions, as the current agricultural reserve is inadequate to address the situation.

Hansen also addressed the controversy surrounding the provisional application of the EU-Mercosur trade agreement. Despite opposition from farmers, trade unions, and MEPs, Hansen noted that there was a clear mandate from the EU Council for this provisional application. He highlighted the potential benefits for various sectors, including wine, spirits, dairy, olive oil, and ham, emphasizing the economic reality these sectors face.

Regarding environmental standards, Hansen stressed that the Commission's simplification agenda does not imply a dilution of agricultural standards, particularly concerning pesticides. He acknowledged the lengthy approval process for new biopesticides, which deters innovation and competitiveness. Hansen urged for a more efficient system to ensure that the EU remains competitive globally, warning that slow procedures could drive innovation elsewhere, such as to the United States.