EU must maintain dialogue with Russia to restore trade, says Freshfel
Freshfel has emphasized the need to maintain dialogue with Russian authorities, after President Vladimir Putin signed a decree last week extending its ban on food imports from the West until the end of 2017.
In 2014 Russia banned food imports from the European Union (EU), the U.S., and some other Western countries in response to sanctions imposed on it for its role in the Ukraine crisis.
In a release, the European Fresh Produce Association expressed its 'regret' at the ongoing political despite, which has severely hit fruit and vegetable trade.
It said the introduction of the ban on August 2014 affected an export volume of 2.5 million metric tons (MT) of produce.
"When the embargo was introduced, the sector welcomed the immediate response of the European Commission, providing exceptional measures to counterbalance the effects of the interrupted trade relations. Unfortunately, the measures had only limited effects," Freshfel said.
"Some free distribution benefits, being part of the recovery package, are now generating new indirect market difficulties.
"Free distribution to charity is the main destination of distribution of surplus volumes within the exceptional scheme, but free access to the distributed products for the consumer influences commercial opportunities for the operators."
It added that with the beginning of the third season under embargo, even less budget would be available for the year to come.
"Freshfel engages frequently with the European Commission to reinforce the efficiency of the exceptional measures scheme for the benefit of the sector," it said.
Besides managing the economic challenges caused by the ban, EU exporters have made great effort to diversify their export destinations.
"Freshfel Europe therefore stresses the importance to maintain dialogue with the Russian authorities to progressively restore business, which is also affected by the volatile economic circumstances in Russia," it said.
"The association further urges the European Commission to also continue to improve the efficiency of its exceptional measures and to continue to facilitate market access to third countries."
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