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Russia vegetable ban loosens EU's single market

Published 12 July 2011
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One month after the EU identified a deadly E.coli bacteria outbreak in Germany, Russia has started resuming imports of vegetables from a total of six European countries, apparently taking advantage of a recent bilateral agreement that allows it to treat the EU market on a nation-by-nation basis.

Russia allowed imports of vegetables from Greece and the Czech Republic yesterday (11 July) on the basis of certificates guaranteeing their safety.

Earlier, Moscow had resumed imports from Belgium, the Netherlands, Spain and Denmark.

Russia banned fresh vegetables from all 27 EU nations on 2 June, citing health concerns over an E.coli outbreak that has killed at least 49 people. The EU said the breadth of the ban was unjustified (see 'Background').

At a Russia-EU summit on 10 June, Russia agreed to lift the ban if it received safety certificates. The process has been slow and some countries including Poland protested after being unable to resume deliveries.

Moscow appears to be taking advantage of a compromise agreement reached between European Commission President José Manuel Barroso and Russian President Dmitry Medvedev to allow imports of European vegetables to Russia, accompanied by documents certifying their safety.

At the time it was negotiated, the bacteria outbreak was still unidentified. The compromise could have allowed EU vegetable exports to Russia to continue under a certification regime. But in the absence of any threat after the origin of the contamination was identified, the agreement now appears instead to hamper EU vegetable exports to Russia.

Moreover, the agreement gives Moscow the opportunity to treat the EU's single market on a nation-by-nation basis, reducing trade to an instrument of power politics.

In a recent statement, EU Trade Commissioner Karel De Gucht linked Russia's handling of the E.coli controversy with the country's bid to join the World Trade Organisation (WTO).

"What the Russians are doing is completely unacceptable," he was quoted as saying by Reuters.

Recently, US President Barack Obama acknowledged Russia's ambition to join the WTO by the end of the year, before presidential elections scheduled in March 2012. But he also linked it to a vote in Congress to approve "normal trade relations with Russia".

'Normalisation' of US trade with Russia implies the lifting of a Cold War-era provision known as the Jackson-Vanik amendment. This amendment was a response to Soviet-era 'diploma taxes' levied on Jews attempting to emigrate.

Background: 

With around 1,500 people in Germany already having fallen ill in one of the worst recorded outbreaks of E.coli in history, Russia banned on 2 June imports of fresh vegetables from Europe and accused Brussels of sowing chaos by failing to provide enough information about the outbreak.

Russia's ban prompted cries of protest from the Polish and Dutch governments and a rebuke from the European Commission.

On 12 June Germany finally pinned down the deadly E.coli outbreak to contaminated bean sprouts and shoots grown at an organic farm in the north of the country.

But just days before, on 10 June an EU-Russia summit agreed for a compromise to resume trade in vegetables, accompanied by documents certifying their safety.

Commission President José Manuel Barroso said at the summit that the EU would send a proposal for such certificates to Russia in the next few days, adding that the certification system for the vegetables would be put in place "without delay".

The EU exported about 600 million euros worth of vegetables to Russia last year.

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