Malta to benefit from new EU cereals proposal

European Agriculture Commissioner Mariann Fisher Boel said yesterday she is planning to propose the total suspension of cereal import duties until June 30, 2008, unless market conditions justify their reintroduction before that date.

The plans must be approved by EU agriculture ministers before they can be applied.

If the measure is implemented, Malta will benefit substantially as Maltese cereals importers could start buying directly from non-EU countries without forking out extra costs.

The price of cereals on the international market is lower than that on the EU market. However, Maltese importers will have to sustain substantial import duties when importing from outside the EU.

The new Commission initiative, which was put to EU agriculture ministers yesterday in Brussels, is a reaction to the exceptionally tight situation on the cereals markets and the record price levels.

The Commission said that while current levels of border protection for cereals are rather low, import duties are still applied for certain types of grains that are relevant for the balance of the EU market.

Meanwhile, during their Agriculture Council meeting, EU ministers approved plans to set a zero per cent rate for compulsory set-aside this autumn and in next spring's sowings.

The Commission said the change is in response to "the increasingly tight situation on the cereals market" and should add at least 10 million tonnes to next year's cereals harvest.

Cereals are being traded at very high prices with a consequential rise in all its by-products such as bread, milk, cheese, meat and many other essential products.

Although a small market, Malta is also feeling the pinch with the government recently announcing an increase in subsidies on animal food and bread.

Malta was represented at yesterday's Agriculture Council by Parliamentary Secretary Frans Agius.