Luis Planas: “Food cannot be part of any trade war” | Economy

by Andrea
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(Valencia, 72 years old) begins another year at the head of the Ministry of Agriculture, Fisheries and Food, the seventh since his appointment in 2018. A 2025 that he anticipates “complex and interesting.” The National Food Strategy will soon be brought to the Council of Ministers, a priority issue for the Government in this legislature and which aims to respond, among others, to the problems that the pandemic and have caused in the food supply. On an international scale, it faces the drums of one or China, key markets for the Spanish countryside, and the premiere of the , which Planas identifies as a great opportunity for the sector. Challenges such as the application of mirror clauses, or the growth of agricultural income, also appear on the horizon.

Ask. When do they take the National Strategy to the Council of Ministers? What are its bases?

Answer. Predictably, it will be this Tuesday the 21st. It aims to be a summary of guidelines on public policies, to answer three major questions. Firstly, strategic autonomy: we must ensure that the European Union’s food security is not disrupted by pandemics or wars. The second point is the sustainability of production, because there are serious risks such as water scarcity, rising temperatures or the erosion of fertile soil… The modernization of irrigation or new genomic techniques, which allow obtaining more seeds or plants. resistant to drought or high temperatures, may be an answer. And thirdly, everything related to health, fighting against all problems related to obesity. And two other elements: the protection of rural areas and generational change. This requires profitable operations and improving the reputation of the sector. For me, recovering the prestige of the food production activity is a fundamental objective.

P. How are these orientations grounded?

R. In large part they are at the European level. There is an element, such as the Common Agricultural Policy (CAP), that must be equipped and used intelligently to face this new European cycle. Another is the valorization of primary production. Spain is not a country low costbut one of the most developed in the world. If we want to differentiate our food production, it has to be in terms of quality, safety and innovation. On the other hand, and unfortunately, food has been affected by the world’s major trade conflicts in the last 10 years. We talk about steel, airplanes, electric cars, but the objective ends up being the agri-food sector. Food cannot be, neither from an offensive nor a defensive point of view, part of any trade war.

P. Tomorrow he takes possession. Are you afraid that a conflict of this type will break out?

R. I prefer to approach it as an opportunity, especially with Mercosur, with 268 million inhabitants and an emerging middle class, which represents a great opportunity for the olive oil, wine, pork, citrus and processed products sectors, among others. There is a lot of talk about Mercosur imports, such as beef, poultry, sugar and rice, but they are minimal. In addition, the agreement protects designations of origin and contains safeguard clauses that allow imports to be suspended if they do not meet expectations. Spain must diversify its exports and expand trade agreements with countries such as Canada, Japan and Korea, as it has done with Mercosur.

P. The agreement reached with the United States in 2021 to eliminate tariffs on some foods ends in one year. Is its validity in danger?

R. It is best for everyone to avoid trade wars. Rules-based international trade has increased wealth, employment and, in the food sector, reduced hunger and supply problems.

Luis Planas, Minister of Agriculture, Fisheries and Food, at the ministry headquarters.
Luis Planas, Minister of Agriculture, Fisheries and Food, at the ministry headquarters.Pablo Monge

P. Does the agreement with Mercosur guarantee equal conditions in both directions?

R. The agreement requires imported products to meet EU food safety standards, which are among the strictest in the world. It is false that food is allowed to enter without controls. Then there are the limitations on the use of phytosanitary products, which is independent. The Twenty-seven apply the principle of the Maximum Residue Limit (MRL), which guarantees that food is not harmful to health. Spain defends, together with France and other countries, that these products prohibited in the Union cannot be used in imported foods either, and we are not referring to the Mercosur countries. Although this has not yet been achieved, it is a fair demand from farmers that I fully support.

P. Do you have room to apply mirror clauses?

R. For this you need two things. First, a majority of Member States supporting them, which now exists, as some countries prioritize imports and low prices. Second, compatibility with the regulations of the World Trade Organization (WTO), which could consider these measures as trade restrictions. But I think it is possible to advance in this legislature. We are going to work for the EU to adopt mirror clauses as part of its trade policy.

P. following European tariff threats on its electric cars. Are you worried about this relationship?

R. China is our third international market after the United Kingdom and the United States. Agri-food relations with them are intense and positive, although they are now under the scrutiny of several investigations that affect all of Europe – brandy, dairy products, fresh pork and beef. Spain and the EU have collaborated in a transparent manner, and we hope that they will be archived and we can continue expanding agri-food exchanges with China.

P. At the national level, a new increase in the minimum wage and reduction of working hours is being discussed. Does the field have the capacity to withstand these measures?

R. I repeat, Spain is not a country low cost. We differentiate ourselves in terms of quality, safety or innovation. The dignity of work, remuneration, and schedules are elements that determine salary costs. Ours are higher, and also lower, than those of some EU countries. No measure that this Government has taken on the minimum wage has had a negative effect on employment, not even in the agricultural sector. They do not seem to me to be factors that are going to substantially modify the situation in our sector.

P. Does the agricultural sector support excessive regulation in sustainability?

R. Regulation, as necessary, no more, no less. This is always a controversial topic. From the point of view of , we have to make everything simpler for the farmer and the rancher. We are promoting a growing digitalization of all these types of procedures. Spain has one of the highest standards in the world in terms of the safety of livestock production. Thanks to that, we have been able to exponentially increase our exports to third countries.

P. Agricultural income grew by 14% in 2024, reaching 38 billion, a record. What evolution do you expect?

R. Variations in agricultural income involve cycles in the medium and long term, but they are subject to sawtooths linked to often climatic or market factors. For example, the war in Ukraine in 2022 or the drought in 2023. The data for 2024 speaks of a positive trend, also in exports. There are those who say that it is thanks to large legal entities, but behind them there are thousands of farmers and ranchers who increase income and agricultural production.

P. Agriculture has mobilized 444.5 million, 200 in direct aid. When are they going to start paying? Couldn’t they have been delivered sooner?

R. We have had to survey the farms, which was almost impossible during the first weeks after the disaster. So far, almost 40,000 appraisals have been carried out and we have identified nearly 9,000 potential beneficiaries, who meet the requirement of production loss of at least 40%. At the end of December, a list was published of more than 6,700 who will receive aid before the end of this month, for an amount greater than 5,000 euros.

P. The percentage of beneficiaries is just over 20%. Are you considering making the aid more flexible?

R. We have set some conditions. We start from an agricultural insurance system that allows any agricultural production to be insured. In Valencia, 32 million euros in compensation related to damage have already been paid, which shows that the system works well. The aid we apply is complementary to insured or uninsured, depending on the extraordinary circumstance of the injury. Therefore, we maintain a level of demand similar to that of Agricultural Insurance.

Luis Planas, Minister of Agriculture, Fisheries and Food.
Luis Planas, Minister of Agriculture, Fisheries and Food.Pablo Monge

P. The last three years have seen a great increase in the price of the shopping basket. Were the measures taken to mitigate it effective?

R. We have adopted pioneering tax measures in Europe, such as the reduction or elimination of VAT on essential products. This was done at a cost to the public treasury and respecting community standards. I would say yes, we have been effective. We have also included olive oil in essential products to mitigate the impact of the sharp increase in prices caused by reduced harvests. Furthermore, we are below the average food inflation in the EU and the Eurozone.

P. The oil now registers drops of 40% since the start of the new campaign. Is this behavior normal?

R. If anyone thinks that there is any irregularity in the formation of prices, they should report it. The olive oil market follows recurring patterns: campaigns with greater production have lower prices, and short ones cause high prices, as has happened in the previous two. In recent weeks we have seen an abrupt drop that appears to have stabilized with a slight recovery in prices.

P. Has any link in the food chain benefited from the inflationary crisis?

R. The data reflects stability and balance in the chain. Stock ruptures were avoided and the profitability of all sectors was guaranteed. With the unfair commercial practices directive and the modification of the chain law we seek to ensure that all links have positive performance. The prohibition of selling at a loss seeks to protect the primary sector, guarantee reasonable prices for consumers and maintain a balance.

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