Egypt announced on Sunday it will hold talks with Russian Federation to try to resolve a trade dispute over agricultural produce that has strained their relations. Russia said last week it was seeking talks with Egypt, its top wheat buyer, over Cairo’s failure to approve any Russian wheat shipments since tightening its regulations on ergot last month. The team aim to discuss the Russia’s temporary ban on the import of Egyptian crops.
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Egypt depends on a steady stream of massive wheat shipments in order to run its sprawling bread subsidy program, which feeds tens of millions of its citizens and may suffer if the zero ergot policy continues to block access to global grains.
Vegetables and fruits are the number one export to Russia from Egypt, with exports increasing in 2015/2016 following Russian restrictions on Turkish imports. Most countries permit shipments with up to 0.05 percent.
It’s the third failed tender since regulators in August reinstated a ban on ergot, a fungus commonly found in wheat that’s harmless at trace levels but can be toxic in large amounts.
On Saturday night, Egypt’s Minister of Trade and Industry Tarek Kabil met with Russian ambassador Cairo to discuss sending a committee over to Russia.
Egypt rejected at least two wheat cargoes in the past month because of ergot and officials have gone back and forth this year over whether to ban ergot or adhere to worldwide standards, which allow up to 0.05 percent of the fungus.
Last week, Rosselkhoznadzor announced that the imports of Egyptian agricultural products would be banned starting Thursday until Egyptian authorities take steps to ensure their safety.
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“It is important to find an urgent solution.as the new export season will start in November, especially for citrus, which reached 400,000 tonnes in the previous season”, Kabil said in his statement.
