Recent International Grain Trade Coalition (IGTC) meetings in Brussels brought together global grain industry representatives, including Grain Trade Australia CEO Pat O’Shannassy in his role as IGTC President.
The delegation included members from Australia, Argentina, Brazil, Canada, East Africa, EU and the United States. Meetings were held with European Commission officials responsible for trade, health and agriculture, as well as the Canadian Mission to the European Union, COCERAL, and the incoming Irish Presidency.
A key focus was the European Union’s Food and Feed Safety “Omnibus” package and proposed changes to pesticide residue rules (Regulation (EC) No 396/2005). These changes could allow certain maximum residue limits to be set at the lowest measurable level for chemicals no longer approved in the EU.
IGTC raised concerns that this “hazard” based approach moves away from a “risk” based approach and international Codex standards and could create further differences between regulatory systems. For Australian exporters, such divergence can increase compliance complexity and add uncertainty when accessing multiple markets with different residue requirements. This non-tariff measure (NTM) ultimately increases risks unnecessarily and potentially restricts market access.
Pat also chaired the IGTC’s Strategy Session during London Grains Week. Members discussed engagement priorities in Europe and Asia, including potential cooperation with the International Grains Council (IGC), APEC and the ASEAN Secretariat on non-tariff barriers.
At the IGC Grains Conference, Pat participated in a dialogue with the Deputy Director-General of the WTO and IGC Executive Director on global trade priorities. Discussions highlighted the growing use of environmental and technical regulations at borders and their impact on grain trade costs.
A separate panel on non-tariff barriers, involving representatives from global grain, seed and trade organisations, reinforced that technical regulations, sanitary and phytosanitary measures, and certification requirements are now the main drivers of trade complexity.
For GTA Members, these discussions are important because regulatory differences across major markets can directly affect market access, increase risk and compliance costs, influencing the competitiveness of Australian grain exports.
