Trade Policy

EU Official Feed and Food Controls – feed imports of PKE After much lobbying by the trade, EU officials decided to postpone a decision to add Palm Kernel Expeller to the high risk list which would have required testing of 50% of cargoes from Malaysia for arsenic. Gafta will continue to maintain close dialogue with the Commission following the next EU discussions ahead of October review.	Feed materials free from processing aids and chemical impurities Current EU legislation requires all feed materials to be free from processing aids and chemical impurities by September 2012. The details of the proposal by EU feed chain task force have been circulated to members for comments by mid May particulary on processing aids in protein meals. The task force has put forward a general level of 0.1% to member states and have set specific maximum limits in certain cases. See all details in AM/2012/111.
GM Policy The EU published its approval of four GM soy events, 1 renewal and 3 approvals earlier in the year. See AM/2012/040. The trade is awaiting EFSA’s evaluation of MIR162 GM corn trait which is expected to be published by September at the latest. After full approval in EU system, corn product imports will resume.	Revision Of MIFID The European Parliament’s Economic Affairs committee has recently held an exchange of views in late April on the Commission proposal to revise the Directive on Markets in Financial Instruments Directive (MIFID). It would seem that the MEPs were generally supportive of the Commission’s proposal and would like to take a more hardline approach on position limits for contracts and narrowing exemptions. This legislation will have an impact not only on commodity traders but energy traders alike.
EU market measures The EU has agreed to continue its temporary suspension of import duties on certain cereals until 30th June 2012. The measures apply to all imports under the reduced tariff quotas according to Regulation 1067/2011 and 2305/2011 respectively and are in place to maintain flows of imports conducive to EU market equilibrium. See all details in AM/2011/465. Please refer to the website to see details on licence allocations for wheat, barley and maize.	EU maximum levels on cadmium The EU is revising its maximum limits on certain grains, oilseeds and general produce. Some Gafta members have raised concerns about proposed levels for wheat and particularly durum wheat, although the Commission is reluctant to maintain current limits on wheat as it is one of the main contributors to cadmium in food. A new revised draft was circulated ahead of the 23rd November meeting and all details can be viewed in AM/2011/436 & 213. Currently, the EU is awaiting data from South America on cocoa before the draft can enter interservice consultation.