Brussels’ battle over whether plant-based foods can be sold as “veggie burgers”
and “vegan sausages” ended the year in stalemate on Wednesday, after talks
between EU countries and the European Parliament collapsed without a deal.
French centre-right lawmaker Céline Imart, a grain farmer from southern France
and the architect of the naming ban, arrived determined to lock in tough
restrictions on plant-based labels, according to three people involved.
Her proposal, dismissed as “unnecessary” inside her own political family, was
tucked inside a largely unrelated reform of the EU’s farm-market rulebook. It
slipped through weeks of talks untouched and unmentioned, only reemerging in the
final stretch — by which point even Paul McCartney had asked Brussels to let
veggie burgers be.
The Wednesday meeting quickly veered off course.
Officials said Imart moved to reopen elements of the text that negotiators
believed had already wrapped up, including sensitive rules for powerful farm
cooperatives. She then sketched out several possible fallbacks on dairy
contracts — a politically charged issue for many countries — but without
settling on a clear line the rest of the Parliament team could rally behind.
“And then she introduced new terms out of nowhere,” one Parliament official
said, after Imart proposed adding “liver” and “ham” to the list of protected
meat names for the first time.
“It was very messy,” another Parliament official said.
EU countries, led in the talks by Denmark, said they simply had no mandate to
move — not on the naming rules and not on dairy contracts.
With neither side giving ground, the discussions ground to a halt. “We did not
succeed in reaching an agreement,” Danish Agriculture Minister Jacob Jensen
said.
Imart insisted that the gap could still be bridged. Dairy contracts and
meat-related names “still call for further clarification,” she said in a written
statement, arguing that “tangible progress” had been made and that “the prospect
of an agreement remains close,” with negotiations due to resume under Cyprus in
January.
“We did not succeed in reaching an agreement,” Danish Agriculture Minister Jacob
Jensen said. | Thierry Monasse/Getty Images)
Dutch Green lawmaker Anna Strolenberg, who was in the room, said she was
relieved: “It’s frustrating that we keep losing time on a veggie burger ban —
but at least it wasn’t traded for weaker contracts [for dairy farmers].”
For now, that means veggie burgers, vegan nuggets and other alternative-protein
products will keep their familiar names — at least until Cyprus picks up the
file in the New Year and Brussels’ oddest food fight resumes.
Tag - Dairy
The next time your favorite veggie burger quietly rebrands itself as a
“plant-based patty,” you now know who to thank: Céline Imart.
The grain farmer from southern France, now a first-term lawmaker in the European
Parliament, slipped a ban on meaty names for plant-based, fermented and
lab-grown foods into an otherwise technical measure.
Inside the Parliament, it caused a minor earthquake. Her own group leader,
German conservative Manfred Weber, publicly dismissed it as “unnecessary.” The
group’s veteran agriculture voice, Herbert Dorfmann, voted against it. Diplomats
from several capitals shrugged it off as “silly” or “just stupid.”
And yet, as negotiations with EU governments begin, the amendment that everyone
assumed would die in the first round is still standing — not because it has a
powerful constituency behind it, but because almost no one is expending
political capital to bury it.
That alone says something about where Europe’s food politics are drifting.
A FIGHT ABOUT MORE THAN LABELS
Imart insists the amendment isn’t an attack on innovation, but a gesture of
respect toward the farmers she represents.
“A steak is not just a shape,” she told POLITICO in an interview. “People have
eaten meat since the Neolithic. These names carry heritage. They belong to
farmers.”
She argues some shoppers genuinely confuse plant-based and meat products,
despite years of EU surveys showing consumers largely understand what a “veggie
burger” is. Her view, she argues, is shaped by what she hears at home.
“Maybe some very intelligent people never make mistakes at the supermarket,” she
said, referring to Weber and Dorfmann. “But a lot of people in my region do.
They don’t always see the difference clearly.”
In rural France, where livestock farming remains culturally central, Imart’s
argument resonates. Across Europe, similar anxieties simmer. Farmers say they
feel squeezed by climate targets, rising costs and what they see as moralizing
rhetoric about “healthy and sustainable diets.”
The EU once flirted with promoting alternative proteins as part of its Green
Deal ambitions.
Agriculture Commissioner Christophe Hansen has spent most of the year soothing
farm anger, not pushing dietary change. | Thierry Monasse/Getty Images
Today, that political moment has mostly waned. References to “protein
diversification” appear in draft strategies only to be scrubbed from the final
text. Public support remains dwarfed by the billions the Common Agricultural
Policy funnels to animal farming each year. Agriculture Commissioner Christophe
Hansen has spent most of the year soothing farm anger, not pushing dietary
change.
This helps explain why an idea dismissed as fringe suddenly doesn’t feel fringe
at all. Imart’s amendment taps directly into a broader mood: Defend the farmer
first; innovation can wait.
BOOM AND BACKLASH
The industry caught in the crossfire is no longer niche. Retail sales of meat
and dairy alternatives reached an estimated €6-8 billion last year, with Germany
alone accounting for nearly €2 billion. Fermentation-based dairy substitutes are
attracting investment, and even though cultivated meat isn’t yet authorized in
the EU, it has already become a regulatory flash point.
But the sector remains tiny beside the continent’s livestock economy, and is
increasingly buffeted by political headwinds.
After two years of farmer protests and fatigue over climate and environmental
reforms, national governments have closed ranks around traditional agriculture.
Countries like Austria, Italy and France have warned that novel foods could
undermine “primary farm-based production.” Hungary went even further this week,
voting to ban the production and sale of cultivated meat altogether.
For alternative protein companies, the irony is hard to miss. They see their
products as both a business opportunity and part of the solution to the food
system’s climate and environmental footprint, most of which comes from animal
farming. Yet they say politics are now moving in the opposite direction.
“Policymakers are devoting so much attention to unnecessary restrictions that
would harm companies seeking to diversify their business,” said Alex Holst of
the Good Food Institute Europe, an interest group for plant-based and cultivated
alternatives. He argued that familiar terms like “burger” and “sausage” help
consumers understand what they’re buying, not mislead them.
WHY THE NAMING BAN WON’T DIE
The political climate explains why Imart’s idea suddenly resonates. But Brussels
lawmaking procedure explains why it might survive.
At the negotiating table, national governments are consumed by the Parliament’s
more disruptive ideas on market intervention and supply management, changes they
fear could distort markets and limit the authorities’ flexibility to act.
Compared with those fights, a naming ban barely registers. Especially in an
otherwise technical reform of the EU’s Common Market Organisation, a piece of
legislation normally reserved for agricultural specialists focused on crisis
reserves and market tools.
That gives the amendment unusual space. Several diplomats privately complained
it sits awkwardly outside the scope of the original European Commission
proposal. But not enough to coordinate a pushback.
The Commission, meanwhile, has signaled it can “live with” stricter naming
rules, having floated narrower limits in its own post-2027 market plan. That
removes what might have been the decisive obstacle.
Retail sales of meat and dairy alternatives reached an estimated €6-8 billion
last year. | Jens Kalaene/Getty Images
Even translation quirks, like the fact that “filet,” “filete” and “fillet” can
mean different things across languages, haven’t slowed it. Imart shrugged those
off: “It’s normal that texts evolve. That’s the point of negotiation.”
Whether the naming ban makes it into the final law will depend on the coming
weeks. But the fact it is even in contention, after being mocked, dismissed and
rejected inside Imart’s own political family, is telling.
In today’s Brussels, appeals to heritage and identity land more softly than
calls for food system innovation. In that climate, that’s all even a fringe idea
needs to survive.
AOSTA, Italy — The 380,000 wheels of Fontina PDO cheese matured each year are
tiny in number compared to the millions churned out by more famous rivals — but
that doesn’t make the creamy cheese any less important to producers in Valle
d’Aosta, a region nestled in the Italian Alps.
Fontina’s protected designation of origin (PDO) provides consumers at home and
abroad a “guarantee of quality and of a short supply chain,” explained Stéphanie
Cuaz, of the consortium responsible for protecting the cheese from cheap
copycats, as she navigated a hairpin turn on the way to a mountain pasture.
With fewer than a hundred cows, a handful of farm hands and a small house where
milk is transformed into cheese, the pasture at the end of the winding road
feels far away from global trade tussles its flagship product is embroiled in.
The EU’s scheme to protect the names of local delicacies from replicas produced
elsewhere has proved controversial in international trade negotiations.
For instance, in 2023, free trade talks with Australia were swamped by
complaints from its cheese producers railing against EU demands that they
refrain from using household names like “Mozzarella di Bufala Campana” and
“Feta.”
Fontina was caught in the crossfire, having been included in the list of names
the EU wants protected Down Under.
Fontina DOP Alpeggio is a variant of the cheese produced during the summer
months using milk from cows grazing in alpine pastures up to 2,700 meters above
sea level | Lucia Mackenzie/POLITICO.
No such protections exist in the U.S., where in the state of Wisconsin alone,
there are a dozen “fontina” producers, one of which won bronze at the World
Cheese Awards in 2022.
Europe’s small-time food producers find themselves in a bind: their protected
status is vital for promoting their traditional products abroad, but charges of
protectionism have soured some trade negotiations. Nonetheless, many of the
bloc’s trading partners clearly see the benefits of the system, baking in
similar protections for their own products into trade deals.
PROTECTION VS PROTECTIONISM
Fontina cheese can only be labeled as such if several strict criteria are met.
Cows of certain breeds need to be fed with hay of a certain caliber and,
crucially, every step of the cheesemaking process must take place within the
region’s borders.
For Cuaz, who grew up on a dairy farm in Doues, a small town of around 500
people perched on the valley side, the protection of the Fontina name is vital
to keep farming alive and sufficiently paid in the region. Tucked up against the
French and Swiss borders, Valle d’Aosta is Italy’s least populated region, home
to just over 120,000 inhabitants speaking a mixture of Italian, French and the
local Valdôtain dialect.
Fontina — which with its distinctive nutty flavor can be enjoyed on a
charcuterie board, in a fondue, or encased in a veal chop — is one of over 3,600
foods, wines, and spirits registered under the EU’s geographical indications
(GI) system. This protects the names of products that are uniquely linked to a
specific region. The idea is to make them easier to promote and keep small
producers competitive.
In the EU alone, GI products bring in €75 billion in annual revenue and command
a price that’s 2.23 times higher than those without the status, the bloc’s
Agriculture Commissioner Christophe Hansen proclaimed earlier this year. He
called the scheme a “true EU success story.”
The GI system is predominantly used in gastronomic powerhouses like Italy and
France, and Hansen hopes to promote uptake in the eastern half of the bloc.
Italy has the most geographical indications in the world, accounting for €20
billion in turnover, the country’s Agriculture Minister Francesco Lollobrigida
pointed out, describing the system as an “extraordinary value multiplier.”
‘NOTHING MORE THAN A TRADE BARRIER’
While several trading partners apparently share the enthusiasm of Hansen and
Lollobrigida — the EU’s trade agreements with countries from South Korea to
Central America and Canada include protections for selected GIs — others view
the protections as, well, protectionist.
The U.S. has long been the system’s most vocal critic, with the Trade
Representative’s annual report on intellectual property protection calling it
out as “highly concerning” and “harmful.”
Washington argues that the rules undermine existing trademarks and that product
names like “fontina,” “parmesan” and “feta” are common and shouldn’t be reserved
for use by certain regions.
That reflects the U.S. dairy industry’s resentment towards Europe’s GIs: Krysta
Harden, U.S. Dairy Export Council president, argued they are “nothing more than
a trade barrier dressed up as intellectual property protection.” Meanwhile, the
National Milk Producers’ Federation blames the scheme, at least in part, for the
U.S. agri-food trade deficit.
American opposition to the system doesn’t stop at its own trade relationship
with the EU. The U.S. Trade Representative’s Office also accused the EU of
pressuring trading partners to block certain imports and vowed to combat the
bloc’s “aggressive promotion of its exclusionary GI policies.”
DOUBLING DOWN
Unfazed by the criticism, Hansen continues to tout geographical indications as
vital in the EU’s ongoing trade negotiations with other countries.
The EU’s long-awaited trade accord with the Latin American Mercosur bloc is
heading toward ratification and includes GI protections for both sides. Speaking
in Brazil last month, Hansen went out of his way to praise his hosts for
protecting canastra, a highland cheese, and cachaça, a sugarcane liquor, against
imitations.
Fifty-eight of the GIs protected under the agreement are Italian, Lollobrigida
told POLITICO. This protects Italy’s reputation for high-quality food, he said,
and ensures “that Mercosur citizens receive top-quality products.”
The EU recently concluded a deal with Indonesia which will protect more than 200
EU products, and a geographical indication agreement is actively being discussed
in talks on a free-trade deal with India that both sides hope to wrap up this
year. As negotiations with Australia pick up once again, the issue of GI cheeses
is expected to return to the spotlight.
The U.S. pushback on GIs in other countries has fallen on deaf ears, argued John
Clarke, the EU’s former lead agriculture negotiator. He criticized detractors
for peddling “specious arguments which bear no relationship to intellectual
property rights.”
American claims that some terms are universally generic are “illegitimate” and
ultimately “very unsuccessful,” in Clarke’s view.
“They came too late to the party,” he said, “and their arguments were not very
convincing from a legal point of view.”
CULTURE AND COMMERCE
The uptake of GIs in other countries demonstrates the additional value the
schemes can bring for rural communities and cultural heritage, Clarke posited.
In Valle d’Aosta, the GI system “keeps people and maybe also young farmers
linked to this region,” argued Cuaz, adding that young people leaving rural
areas in favor of urban centers is a real problem for her region.
From tournaments to find the “Queen” of the herd that are a highlight of summer
weekends to the “Désarpa” parade marking the end of the season as cows return to
the valley from their Alpine pastures, Fontina cheese production keeps
traditions alive in the tiny region every year. The dairy industry even plays a
role in making use of abandoned copper mines, where thousands of cheese wheels
mature annually.
Thousands of cheese wheels are matured the Valpelline warehouse, built in the
tunnels of a former copper mine. | Lucia Mackenzie/POLITICO.
Supporters of the GI scheme also point to the food and wine tourism
opportunities it offers. Les Cretes vineyard, winery and tasting room represent
one such success story.
The flavors imbued into traditional and native grape varieties by the soil of
the Valle d’Aosta’s high-altitude vineyards justify its inclusion as a
geographically protected product, explained Monique Salerno, who has worked for
the family business for 15 years and is in charge of tastings and events. The
premium price on the local wines is vital to keep the producers competitive,
given that the steep vines need to be picked by hand, she added.
The business expanded in 2017, building a tasting room to draw tourists to
Aymavilles, the town with a population of just over 2,000 that houses much of
the vineyard.
TARIFF TROUBLE
While American critics have, in Clarke’s view, “lost the war on terroir,”
Europe’s small-time food producers are not immune to the rollercoaster of
tit-for-tat tariffs that have dominated recent EU-U.S. trade negotiations.
Like the vast majority of European products heading to the U.S., cheese is
subject to a 15 percent blanket tariff. In the meantime, however, organizational
mishaps led to some temporary doubling of tariffs on Italian cheeses, angering
major producers.
The whole saga has caused uncertainty, said Ermes Fichet, administrative manager
of the Milk and Fontina Producers’ Cooperative.
The Les Cretes vineyard on the slopes surrounding Aymavilles. | Lucia
Mackenzie/POLITICO
The U.S. is Fontina’s largest overseas market, accounting for around 60 percent
of direct exports. However, producers aren’t fearing for their livelihoods, yet,
as most Fontina cheese isn’t exported at all: an estimated 95 percent of wheels
are sent to distributors in Italy.
Rather, the impact of U.S. trade policy is long term. The American market would
in theory be able to absorb all of Fontina’s production, Fichet explains, but
the sale of similar cheeses at lower prices there makes it difficult to expand
market share.
According to figures released by the USDA’s statistics service, over 5.1 million
kilos of “fontina” cheese was produced in Wisconsin alone in 2024. That comes
out to a higher volume than the 3.1 million kilos of GI-certified Fontina
originating in Valle d’Aosta annually.
And looking elsewhere isn’t an easy option for the small-time cheese makers,
even if future trade agreements include GI recognition.
While markets in countries like Saudi Arabia are growing, they would never close
the gap left by U.S. producers if trade ties worsen, said Fichet.
Responding to the foreign detractors, he highlighted the benefits from the
scheme at home. Fontina DOP “allows us to maintain the agricultural reality of
certain places … it’s an extra reason to try to help those who are committed to
carrying on with a product that is, let’s say, the little flower of the Valle
d’Aosta.”
At New York Climate Week in September, opinion leaders voiced concern that
high-profile events often gloss over the deep inequalities exposed by climate
change, especially how poorer populations suffer disproportionately and struggle
to access mitigation or adaptation resources. The message was clear: climate
policies should better reflect social justice concerns, ensuring they are
inclusive and do not unintentionally favor those already privileged.
We believe access to food sits at the heart of this call for inclusion, because
everything starts with food: it is a fundamental human right and a foundation
for health, education and opportunity. It is also a lever for climate, economic
and social resilience.
> We believe access to food sits at the heart of this call for inclusion,
> because everything starts with food
This makes the global conversation around food systems transformation more
urgent than ever. Food systems are under unprecedented strain. Without urgent,
coordinated action, billions of people face heightened risks of malnutrition,
displacement and social unrest.
Delivering systemic transformation requires coordinated cross-sector action, not
fragmented solutions. Food systems are deeply interconnected, and isolated
interventions cannot solve systemic problems. The Food and Agriculture
Organization’s recent Transforming Food and Agriculture Through a Systems
Approach report calls for systems thinking and collaboration across the value
chain to address overlapping food, health and environmental challenges.
Now, with COP30 on the horizon, unified and equitable solutions are needed to
benefit entire value chains and communities. This is where a systems approach
becomes essential.
A systems approach to transforming food and agriculture
Food systems transformation must serve both people and planet. We must ensure
everyone has access to safe, nutritious food while protecting human rights and
supporting a just transition.
At Tetra Pak, we support food and beverage companies throughout the journey of
food production, from processing raw ingredients like milk and fruit to
packaging and distribution. This end-to-end perspective gives us a unique view
into the interconnected challenges within the food system, and how an integrated
approach can help manufacturers reduce food loss and waste, improve energy and
water efficiency, and deliver food where it is needed most.
Meaningful reductions to emissions require expanding the use of renewable and
carbon-free energy sources. As outlined in our Food Systems 2040 whitepaper,1
the integration of low-carbon fuels like biofuels and green hydrogen, alongside
electrification supported by advanced energy storage technologies, will be
critical to driving the transition in factories, farms and food production and
processing facilities.
Digitalization also plays a key role. Through advanced automation and
data-driven insights, solutions like Tetra Pak® PlantMaster enable food and
beverage companies to run fully automated plants with a single point of control
for their production, helping them improve operational efficiency, minimize
production downtime and reduce their environmental footprint.
The “hidden middle”: A critical gap in food systems policy
Today, much of the focus on transforming food systems is placed on farming and
on promoting healthy diets. Both are important, but they risk overlooking the
many and varied processes that get food from the farmer to the end consumer. In
2015 Dr Thomas Reardon coined the term the “hidden middle” to describe this
midstream segment of global agricultural value chains.2
This hidden middle includes processing, logistics, storage, packaging and
handling, and it is pivotal. It accounts for approximately 22 percent of
food-based emissions and between 40-60 percent of the total costs and value
added in food systems.3 Yet despite its huge economic value, it receives only
2.5 to 4 percent of climate finance.4
Policymakers need to recognize the full journey from farm to fork as a lynchpin
priority. Strategic enablers such as packaging that protects perishable food and
extends shelf life, along with climate-resilient processing technologies, can
maximize yield and minimize loss and waste across the value chain. In addition,
they demonstrate how sustainability and competitiveness can go hand in hand.
Alongside this, climate and development finance must be redirected to increase
investment in the hidden middle, with a particular focus on small and
medium-sized enterprises, which make up most of the sector.
Collaboration in action
Investment is just the start. Change depends on collaboration between
stakeholders across the value chain: farmers, food manufacturers, brands,
retailers, governments, financiers and civil society.
In practice, a systems approach means joining up actors and incentives at every
stage.5 The dairy sector provides a perfect example of the possibilities of
connecting. We work with our customers and with development partners to
establish dairy hubs in countries around the world. These hubs connect
smallholder farmers with local processors, providing chilling infrastructure,
veterinary support, training and reliable routes to market.6 This helps drive
higher milk quality, more stable incomes and safer nutrition for local
communities.
Our strategic partnership with UNIDO* is a powerful example of this
collaboration in action. Together, we are scaling Dairy Hub projects in Kenya,
building on the success of earlier initiatives with our customer Githunguri
Dairy. UNIDO plays a key role in securing donor funding and aligning
public-private efforts to expand local dairy production and improve livelihoods.
This model demonstrates how collaborations can unlock changes in food systems.
COP30 and beyond
Strategic investment can strengthen local supply chains, extend social
protections and open economic opportunity, particularly in vulnerable regions.
Lasting progress will require a systems approach, with policymakers helping to
mitigate transition costs and backing sustainable business models that build
resilience across global food systems for generations to come.
As COP30 approaches, we urge policymakers to consider food systems as part of
all decision-making, to prevent unintended trade-offs between climate and
nutrition goals. We also recommend that COP30 negotiators ensure the Global Goal
on Adaptation include priorities indicators that enable countries to collect,
monitor and report data on the adoption of climate-resilient technologies and
practices by food processors. This would reinforce the importance of the hidden
middle and help unlock targeted adaptation finance across the food value chain.
When every actor plays their part, from policymakers to producers, and from
farmers to financiers, the whole system moves forward. Only then can food
systems be truly equitable, resilient and sustainable, protecting what matters
most: food, people and the planet.
* UNIDO (United Nations Industrial Development Organization)
Disclaimer
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More information here.
https://www.politico.eu/7449678-2
BRUSSELS — Donald Trump’s tariffs have stung both the EU and India into mounting
a big push to get their long-delayed trade deal over the line — fast.
Brussels and New Delhi only have three months left to deliver on their joint
pledge to seal a deal by the end of the year — with the toughest issues related
to agriculture and sustainability yet to be resolved.
Despite unprecedented political will, policymakers and experts alike recognize
it won’t be an easy run to the finish line.
“The negotiations remain extremely challenging,” the EU’s lead negotiator
Christophe Kiener told European lawmakers last week. “It was absolutely expected
that when we start negotiating on the most difficult issues, the most sensitive
areas, it would not be easy.”
As crunch time approaches, with another round of talks scheduled for next week,
here are five things to know:
1. There’s renewed appetite on both sides — thanks to Trump.
Spurred by Trump’s tariff crusade, which hit Indian imports with tariffs as high
as 50 percent and didn’t spare the EU either — albeit with a lower rate of 15
percent on most goods — both sides are frantically hunting for alternative trade
partners.
“When we knew Trump would come into office, Delhi started sending smoke signals
to capitals across Europe saying: We are serious about trade and we want to make
this work to hedge against the uncertainties of tariffs and the U.S.’s
commerce-first approach,” said Garima Mohan, a senior fellow at the German
Marshall Fund who leads the think tank’s work on India.
Roger that, said Brussels.
Taking her whole College of Commissioners to India a few weeks into Trump’s
second mandate, European Commission President Ursula von der Leyen and Indian
Prime Minister Narendra Modi agreed to seal a deal by the end of the year —
something even they recognized would be a steep target.
“It will not be easy. But I also know that timing and determination counts, and
that this partnership comes at the right moment for both of us,” von der Leyen
said at the time.
The EU has been on a negotiation roll, revamping its pact with Mexico, and
concluding talks with the South American bloc of Mercosur countries and with
Indonesia.
2. The two have a complicated trade history.
While India is playing hard to get, it is nonetheless seeking to overcome some
of its protectionist instincts, deepening ties with Japan and negotiating a deal
with Australia.
A deal with the EU, its second-largest trading partner, remains a key objective.
But historically, their trade relationship has never been easy.
“I know from experience how difficult India can be, how difficult it is to
strike the final deal on the more sensitive issues. I suspect that that’s where
we are now,” said Ignacio García Bercero, the EU’s chief negotiator for India
until 2013. That’s when talks went into snooze mode over thorny issues such as
India’s agricultural protectionism and its generic pharmaceuticals. They were
relaunched at India’s request in 2022.
Although negotiators stress things are different this time around, they can’t
escape sometimes conflicting economic approaches given India’s protectionist
history.
“If we look at what is left, it’s the most important stuff … those are exactly
the same things that we were dealing with in 2012, 2013, when the negotiations
derailed last time,” said Nicolas Köhler-Suzuki, associate researcher at the
Jacques Delors Institute.
3. Ukraine isn’t making things any easier.
While Brussels is counting on India for its diversification push, it won’t find
it easy to remain a credible threat to Russia while doing more business with a
country that maintains historically close ties with Moscow.
An EU official, granted anonymity to discuss closed-door discussions, conceded
“one of the biggest issues where [the EU and India] have differences is
Ukraine.”
The world’s most populous country sent 65 troops this month to join Russia’s
annual Zapad military exercise, in which the Kremlin simulated a nuclear attack
on NATO countries. At a recent summit in China, Modi held hands with Russian
President Vladimir Putin as they approached their host, President Xi Jinping.
At a recent summit in China, Narendra Modi held hands with Russian President
Vladimir Putin as they approached their host, President Xi Jinping. | Pool photo
by Suo Takekuma via AFP/Getty Images
Trump, meanwhile, is calling on the EU to hit New Delhi with tariffs as high as
100 percent for enabling Russia’s war in Ukraine.
“It’s not all joyous music and singing and dancing. There is an acknowledgement
that we need to do more to bridge gaps where they are,” the official said,
referring to a communication on India the EU executive put out in
mid-September.
Ultimately, by engaging with India, the intention is to ensure the gap left by
the U.S. isn’t filled by other, politically hostile, powers.
For India, giving up its ties to Russia is a no-go, as that would constitute a
major concession to China, India’s long-standing Asian rival.
“The Russia-China factor is a huge concern for India,” said Mohan.
4. There’s a bunch of tricky technical bits.
Aside from the geopolitics, divergences are also creeping up in a host of
nitty-gritty areas.
For one, there are long-standing disagreements on cars and car parts, wines and
spirits, and other agricultural products. Earlier this year, the two sides
agreed to set aside particularly sensitive agricultural sectors, such as dairy
and sugar, to facilitate the talks.
On top of that come other issues related to agriculture, such as sanitary and
phytosanitary measures. The EU also takes issue with the Indian Quality Control
Orders, which prescribe that certain products must conform to Indian standards
before being sold there.
Sustainability provisions and the EU’s green agenda are also complicating the
negotiations.
“India had been clear from the outset that it did not particularly like the way
the European Union wants to link sustainability-related issues and trade, but
they’ve obviously accepted that we will need to have a chapter on this,” said
Kiener, the EU negotiator.
However, New Delhi still takes issue with making the Trade and Sustainable
Development chapter binding and enforceable through a dispute settlement
mechanism. It has also threatened to retaliate against the EU’s carbon border
tax, as POLITICO reported earlier this year.
“The carbon border adjustment mechanism that the EU has visualized does not meet
the test of fair play,” Commerce Minister Piyush Goyal said then.
If that wasn’t enough, a historical issue has also cropped up in the talks: An
India-Pakistan dispute over the two countries’ rival claims to basmati rice. New
Delhi is pressuring the EU to designate the grain Indian — but if Brussels does
so, it risks a rift with Pakistan.
In short, sealing the agreement will likely entail a trade-off between the
political benefits of a fast deal against the economic gains of a potentially
more comprehensive agreement.
5. They are a temperature check of the EU’s trade priorities.
Ultimately, the deal will be a test of just how much of its (green) trade
ambitions the EU is willing to sacrifice on the altar of geopolitics.
Considering Trump’s attempts to upend or at least significantly harm the
rules-based trade order, calls have been growing for the EU to be more pragmatic
and aim for quicker and less comprehensive deals.
But not everyone agrees that will ultimately be beneficial in the long-term.
“We hope that the result of the trade negotiations will be a commercially
meaningful agreement,” Angelika Niebler of the European People’s Party, chair of
the European Parliament’s delegation for relations with India, said in
Parliament’s trade committee last week.
The India deal will also reveal just how important the bloc deems its aim to
advance the bloc’s environmental agenda through trade deals.
“Clearly, India has [a] different geopolitical alignment, and they have always
been somewhat closer to the Russia operation,” said García Bercero, the former
EU negotiator who now works for the Bruegel think tank.
“But at the end of the day, I don’t think that this would need to be an obstacle
to concluding an agreement.”
LONDON — The U.K.’s trade deal with Donald Trump was touted as a post-Brexit
win.
Months later, as America’s global tariff regime starts to take shape, Brits
aren’t feeling quite so lucky — and some are downright cheesed off.
Under the Economic Prosperity Deal agreed with the U.S. in May, most British
goods exported to America are subject to 10 percent “reciprocal” tariffs. This
is in addition to existing tariffs — known to traders as most-favored nation
(MFN) rates.
By contrast, the EU struck a deal with Trump in July that would see goods from
the bloc hit with an all-inclusive 15 percent tariff — except where the existing
MFN rate is higher.
That means many U.K. products with an MFN rate above 5 percent will now be hit
by higher tariffs than competing EU products — and cheese in the firing line.
“Overall, U.K. goods will get somewhat better [treatment] than European Union
products,” explained Ed Gresser, director for trade and global markets at the
Progressive Policy Institute and a former policy adviser to the United States
Trade Representative. “This also appears to be the case for the very top U.K.
exports to the U.S. cars, medicines, oil — which bring in the most money, and
for wines and liquors.”
The U.K.’s trade deal with Donald Trump was touted as a post-Brexit win. |
EPA/FRANCIS CHUNG / / POOL
“However, there will also be many specific cases in which EU goods get better
treatment than British goods,” Gresser added. “These include some probably
emotive and visible ones, such as cheddar and Stilton cheese, and Shetland wool
sweaters.”
Under the current U.S. tariff regime, British cheddar exported to the U.S. would
be hit by overall tariffs of between 20 and 26 percent — depending on the
packaging and processing — while the EU would get tariffs of between 15 and 16
percent.
IRISH COMPETITION
The discrepancy has not gone unnoticed by British cheesemakers, who fear they
could now be undercut by their European rivals.
“Overall, U.K. dairy — and cheesemakers in particular — have been presented with
a worse deal than their EU competitors as a result of the U.S.-U.K. agreement,”
said Rod Addy, director general of the Provision Trade Federation, which
represents British cheesemakers.
The difference between U.K. and EU tariff rates “suggests EU exporters,
particularly [in] Ireland, may benefit relative to the U.K.,” he added. “Given
that cheddar accounts for roughly three quarters of all U.K. dairy exports, that
is highly significant.”
The U.K. exported 9,855 metric tons of cheese and curd products in 2024 worth
over £75 million, data from the Britain’s Agriculture and Horticulture
Development Board shows. According to the latest data available for 2025, the
U.K. exported around 4,365 metric tons between January and June worth over £36
million.
Coombe Castle International, a major exporter of cheese to the U.S., is among
the British cheese businesses feeling the strain. Currently, the U.S. market
makes up around a third of its business. But they now fear tariffs could reduce
demand for their cheeses, amid increased competition from the EU.
“It does look like we are now disadvantaged compared to Europe, and that’s
certainly going to hurt us when it comes to cheddar and butter, where we’ve got
direct competition in the EU,” said Darren Larvin, Coombe Castle International’s
managing director.
“Tariffs have come at the wrong time. We have a relatively high milk price, a
weak dollar and prices are high with the cost of living. All of those put
together mean it’s quite tough at the moment. So we could really do without
having any further costs.”
Larvin said that like “most people” in the industry, Coombe Castle have “had to
pass all of that on to the consumer in the U.S. … We’re just not in a position
to share any of that [extra cost]. We’ll see how that goes through the chain and
what effect that has on demand.”
Shortly after the EU’s deal with the U.S. was announced, Larvin contacted the
Department for Business and Trade to ask them how they planned to protect U.K.
dairy exports to the U.S. Their response left him nonplussed. In response, an
official said only that negotiations to reduce the 10 percent tariff rate were
continuing, making comparisons “difficult.”
GOVERNMENT ‘MORE CONCERNED WITH LAND ROVERS’
British Stilton makers have also been left disappointed by the U.K.-U.S. deal,
with the cheese now facing duties of between 22 and 27 percent, depending on the
type of Stilton.
“Effectively, it’s another 10 percent on the cost of the product which is very
unhelpful for everyone,” said Robin Skailes, managing director of the family-run
Stilton maker Cropwell Bishop Creamery, which exports around £2.5 million of
cheese to the U.S. each year.
“I can understand why the U.S. government are doing it. But what I don’t like
necessarily is how our government advertises that as a success and a deal. It’s
not a deal because we’re actually worse off than they are in Europe.
“What our government should have done is factored in some of the existing
tariffs that are already there. … But they may not have even known that. I mean,
why would they bother with Stilton? They are more concerned with Land Rovers,
that was the big thing. Food is never at the top of their agenda.”
It’s too early to tell whether tariffs will reduce demand for British cheese in
the U.S. | Til Buergy/EPA
As a result of the additional tariffs, Skailes said the firm would take a
“massive hit” to their margins and has already had to pass on some of the extra
cost to the consumer.
“We can share some of the pain, but there’s not a huge amount of margin in food.
We’re not selling iPhones — we don’t make trillions of dollars.”
For now, it’s too early to tell whether tariffs will reduce demand for British
cheese in the U.S. but Coombe Castle’s Larvin is not optimistic.
“It will certainly make us less competitive — and we’re certainly less
competitive compared to Europe now.”
A spokesperson for the U.K.’s Department for Business and Trade said: “The
U.K.’s landmark trade deal is the result of a pragmatic approach to working with
the US. We will continue to work with the US to get this deal implemented as
soon as possible to give industry the security they need, protect vital jobs,
and put more money in people’s pockets through the Plan for Change.”
LONDON — Britain is sleepwalking through its biggest food safety crisis since
the horsemeat scandal of 2013, a group of influential MPs warned as they
dismissed a recent personal import ban on EU meat and cheese as “toothless.”
The government moved in April to prohibit travelers from EU countries from
bringing meat and dairy products into the U.K. following an outbreak of
foot-and-mouth disease across the continent.
However, as reported by POLITICO, the ban has not been fully enforced, with
experts warning that U.K. health officials lack the funds to uphold the rules.
In a damning report on Monday, the parliament’s Environment, Food and Rural
Affairs Committee warned that “alarming amounts” of meat and dairy products were
still being illegally imported for both personal consumption and sale.
The committee welcomed the government’s ban on personal imports of meat and
dairy from the EU but described it as “toothless,” with prohibited products
continuing to enter the U.K. through airports, seaports and the Eurotunnel in
freight, parcels, personal baggage and passenger vehicles.
“It would not be an exaggeration to say that Britain is sleepwalking through its
biggest food safety crisis since the horse meat scandal,” committee chair
Alistair Carmichael said. “A still bigger concern is the very real risk of a
major animal disease outbreak. The single case of foot-and-mouth disease in
Germany this year, most likely caused by illegally imported meat, cost its
economy one billion euros.”
He urged the government to “get a grip on what has become a crisis” by
establishing a national taskforce, boosting food crime intelligence networks,
enforcing “real deterrents,” and giving port health and local authorities the
resources and powers they need.
During the committee’s nine-month inquiry into animal and plant health, experts
painted a gruesome picture of the situation at the border, describing cases of
meat arriving in unsanitary conditions, often in the back of vans, stashed in
plastic bags, suitcases and cardboard boxes.
At the Port of Dover alone, port health officials say they intercepted 70 tons
of illegal meat imports from vehicles between January and the end of April,
compared with 24 tons during the same period in 2024.
During a Public Accounts Committee session on animal disease last week, Emma
Miles, director general for food, biosecurity and trade at the Department for
Environment, Food and Rural Affairs, said it was unclear whether the increase in
the number of seizures of illegal meat at Dover was due to a rise in crime or to
better surveillance.
“When you’re catching people it might just mean you are doing better
surveillance and enforcement,” she said.
BRUSSELS — The European Commission on Thursday proposed new legislation to
eliminate tariffs on U.S. industrial goods, a move that should unlock a
reduction in Washington’s own tariffs on European autos.
Putting forward the legislation is a precondition for President Donald Trump’s
administration to drop tariffs on European cars to 15 percent from the current
27.5 percent. Under the terms of the transatlantic trade deal unveiled a week
ago, the U.S. would in turn backdate the reduction in its auto tariffs to Aug.
1.
“The first act concerns a proposal to eliminate tariffs on U.S. industrial goods
and provide preferential market access for a range of US seafood and
non-sensitive agricultural goods,” the European Commission said in a press
release.
“The second one proposes to prolong the tariff-free treatment of lobster, now
including processed lobster.”
The agreement, EU trade chief Maroš Šefčovič said last week, was good news for
the bloc’s auto industry, which has been “bleeding a lot of cash” in recent
months.
“This will save car makers more than €500 million in duties that would have
otherwise been paid for exports in one month only,” Brussels added in its
statement.
The handshake trade deal reached between Trump and European Commission President
Ursula von der Leyen in Scotland at the end of July would set a baseline U.S.
tariff on European exports of 15 percent. The EU would meanwhile scrap
industrial tariffs — including the 10 percent it currently levies on autos made
in the United States. Brussels has also committed to open its market wider for a
basket of U.S. farm exports.
The next key question is whether the United States will indeed make good on its
side of the bargain. Trump cast the fragile transatlantic trade truce into doubt
earlier this week when he threatened new tariffs on countries who apply digital
policies that he deems discriminatory.
A senior Commission official was confident this would go through.
“There should not be any doubt: their tariffs on cars and car parts should go
down. That is the U.S. part of the bargain,” the official, speaking on condition
of anonymity, told a briefing.
LOBSTER IN, BEEF OUT
Commission officials underlined that no “sensitive” farm goods were included,
stressing that U.S. beef and poultry remain explicitly excluded from the
concessions. These products are politically explosive in Europe, where stricter
hormone and hygiene rules have long limited American imports.
Instead, Brussels offered tariff-rate quotas on a limited list of U.S. agrifood
exports such as dairy, pork, nuts, seafood and even bison meat. It also kept all
U.S. lobster imports tariff-free, a politically potent win in Washington,
landing as Maine’s lobster season is in full swing. One official described the
concessions as “meaningful, but not very costly” for the EU.
That offers little relief for European farm lobbies which were already critical
of the outline of the deal last week.
Groups like Copa-Cogeca and Farm Europe argue that European agriculture “footed
the bill” for the handshake deal. It won no reciprocal gains, they said, while
still facing a 15 percent tariff ceiling on most exports to the U.S., including
products that previously traded tariff-free, like wine and spirits. Farm groups
say rural interests were effectively sidelined while Europe’s carmakers walked
away with the prize.
EU HURDLES
Proposing the tariff legislation is only a first step, as the Commission will
still need the assent of at least 15 of the EU’s 27 member countries and a
simple majority in the European Parliament for it to take effect.
Since the Commission negotiated the trade deal with the political blessing of
member countries, the Council of the EU that represents them shouldn’t present a
major hurdle.
The European Parliament could be a different proposition, however, with Bernd
Lange, the chair of its international trade committee, telling POLITICO on
Wednesday “there are disagreements about what the exact reduction in numbers
should look like, particularly in the agricultural sector.” Another issue, he
added, was how the deal would be implemented and for how long.
European lawmakers will reconvene next week in Strasbourg for the first time
after the summer recess. Sabine Weyand, the top official at the Commission’s
trade department, will testify before the trade committee on Wednesday.
“We have a parliament with a very divided configuration, and ‘reason’ may not
always be the first characteristic,” said Marie-Pierre Vedrenne, a French
lawmaker from the Renew group.
That said, Manfred Weber, leader of the European People’s Party that has the
largest caucus, has said his conservatives would stand by the deal struck by von
der Leyen, describing it as “painful but right.”
This story has been updated.
OTTAWA — Canada is delaying its plans to slap retaliatory tariffs on U.S. steel
and aluminum after President Donald Trump sent a letter extending the deadline
for trade negotiations between the two North American neighbors — though he also
threatened to impose higher tariffs.
Mark Carney’s government was preparing to double its countertariffs on U.S.
metals on July 21 — to 50 percent from 25 — but Trump’s letter has moved the
prime minister off that target.
Two senior government officials told POLITICO that Canada will not further
retaliate against U.S. steel and aluminum on July 21, the previous deadline for
the talks, after the two sides agreed to extend their negotiation deadline
around a new economic and security deal to Aug. 1.
Canada’s current 25 percent countertariff on U.S. steel and aluminum will remain
in place during the negotiations. But if a deal is not reached by the new
deadline, both sides are threatening to raise and expand their duties on the
other’s goods.
In a letter addressed to Carney on Thursday, Trump wrote that Canadian goods
imported into the U.S. could face a blanket 35 percent tariff starting next
month. A White House official, granted anonymity to discuss the negotiations,
said the administration plans to impose the tariff only on goods that do not
comply with the 2020 USMCA, though the ultimate details will be up to Trump to
decide.
Trump doubled tariffs on all steel and aluminum imports entering the U.S. to 50
percent in June, but Ottawa has yet to match the move — despite pressure from
the steel industry, labor unions and Ontario Premier Doug Ford.
“Everything is pushed back to Aug. 1,” said one official, who was granted
anonymity to speak candidly.
Trump and Carney didn’t speak Thursday, the prime minister’s office said, but
high-ranking officials from both sides met that day, before Trump posted the
letter. Unlike other countries, Canadian officials did not appear rattled by the
letter. The prime minister remained on vacation in the Ottawa region.
“On we go!” a Canadian diplomat, who was granted anonymity, told POLITICO.
Speaking to reporters Friday, Trump noted his trade letter to Carney “was sent
yesterday. They called. I think it was fairly well-received. So, we’ll see what
happens.”
This is the second time the deadline for the U.S.-Canada talks has moved. The
leaders agreed to a July 16 deadline during the G7 Leaders’ Summit but later
moved that to July 21.
Carney said Canada will work toward the revised deadline.
“Throughout the current trade negotiations with the United States, the Canadian
government has steadfastly defended our workers and businesses,” Carney said on
X.
Carney will meet with his Cabinet on Tuesday to discuss the negotiations, and on
July 22 he will meet with Canada’s premiers.
“In the face of President Trump’s latest threat, we need to come together. We
need a plan on how Canada will respond and how we’ll protect our workers,
businesses and communities,” Ford said on the social media site X.
Trump justified the latest threat to increase tariffs by pointing to fentanyl
trafficking — even though America’s own data shows that less than 0.1 percent of
fentanyl seized by U.S. authorities was at the Canada-U.S. border. He also
railed against Canada’s tariffs on U.S. dairy — which are levied only if U.S.
dairy exports exceed a predetermined quota. “Frustratingly, the U.S. has never
gotten close to exceeding” the quotas, the International Dairy Foods Association
said in March.
British Columbia Premier David Eby called Trump’s letter “flailing and factually
incorrect.”
“Other F words come to mind,” Eby said on X. “Just one more reminder of why
Canadians need to come together, to grow our economy and stand strong.”
Ari Hawkins contributed to this report from Washington.
CARDIFF, Wales — At the edge of a sprawling wheat field on the outskirts of
Cardiff, arable farmer Richard Anthony sticks a shovel in the ground and offers
up a fistful of soil for a sniff.
“The first thing [I do when] I walk into a field: I catch a handful of soil,” he
says. “[The] first thing I do is smell it, to see if it smells healthy.”
His mind is on climate change.
The clump in his palm is indeed healthy — but it’s dry. It comes at the tail end
of an unusually hot spring. Anthony and his wife, Lyn, are planting crops in
increasingly short “weather windows,” dodging the wet days of the previous fall.
“It does worry me,” he told POLITICO, acres of wheat plants swaying behind him.
“But we, as farmers, have always had to adapt. And we’re having to adapt to
climate change.”
Farmers like the Anthonys are looking for guidance from the Senedd — the
Labour-led devolved Welsh parliament down the road in Cardiff Bay. “Farming is
seen as the biggest problem with climate change, and we’re not. We’re the only
industry that can actually do something about it,” Anthony said.
But Welsh ministers’ key environmental plans are in disarray, delayed for over a
year after farmers angrily rejected proposals they say would hit jobs and
livelihoods.
Annoying farmers is bad news for Labour in Wales, a country where 90 percent of
land is given over to agriculture. And it has consequences in Westminster, too,
for a U.K. government that can’t afford another political bloody nose.
Welsh national elections next May will be a crucial mid-term litmus test for the
appeal of Keir Starmer’s embattled Labour. The 2026 Senedd vote is seen by party
leaders in London “as a staging post between now and [the general election in]
2029,” said one Welsh union boss in February.
Labour is going backward in Wales.
Welsh polls published Tuesday show Labour, in charge at the Senedd since 1999,
dropping to third place, losing support to both populists Reform UK and
nationalists Plaid Cymru. The party is being punished, experts say, for its own
perceived inertia and a far too cozy relationship with Westminster.
“The Welsh government are in a very difficult situation, in that both they are
unpopular as incumbents and they’re also paying a price for the unpopularity of
the U.K. Labour government,” said Jac Larner, a politics lecturer at Cardiff
University. “So at the moment there is a general resistance, I think, to taking
any tough decisions.”
THE CLIMATE MOMENT
Faltering climate policy contributes to the sense that Welsh ministers are
“losing perceptions of competence,” Larner argued.
The challenge is substantial. Within the next decade, agriculture could become
Wales’ largest source of emissions. To hit a U.K.-wide target of net zero by
2050, most emissions cuts will have to come from high-polluting sectors like
farming.
The Welsh government’s solution is the Sustainable Farming Scheme (SFS) — a
program designed to help farmers adopt low-carbon activities like planting more
trees.
The thinking is that with the offer of cash, farmers will dedicate more of their
land to mopping up planet-wrecking emissions, making the most of its natural
potential to sequester carbon and store it deep in the soil. Wales should reap
the benefits of these “natural carbon sinks,” says the U.K.’s independent
climate advisers, the Climate Change Committee.
But ministers paused the SFS roll-out after initial plans, published in December
2023, provoked protests and a backlash over a draft 10 percent tree-planting
target, which farmers said would cost thousands of agricultural jobs.
The Welsh government says details will now be finalized this summer, with the
scheme up and running in 2026.
With 90 percent of its land used for farming, Wales is seeing instability over
climate and agriculture policy. | Abby Wallace/POLITICO
“I think we’ve come from such a bad place, it’s going to be quite hard to lift
it back up,” said Abi Reader, a dairy farmer and deputy president of the
National Farmers Union Cymru.
Behind Reader, on her farm in the Cardiff town of Wenvoe, a large shed groans as
rows of cattle diligently shuffle into the parlour, waiting to be hooked up to
clinking machines for milking.
“It’s difficult to say whether we should be signing up to it [the SFS] or not,
because we’ve got no details of any of the costings,” Reader said.
“We’re all business people at the end of the day and, you know, we’ve all
already done our budgets for next year. And there’s nothing to go to a bank
manager with and say: ‘I want to borrow this, or can you support me for that?’”
‘BANG, BANG, KICK A MAN’
The SFS has caused unrest on another politically sensitive topic: livestock.
A Welsh government estimate suggested the scheme could reduce livestock numbers
by as much as 120,000.
If ministers in Cardiff follow separate CCC advice published in May — on how to
hit climate goals by 2033 — cattle and sheep numbers in Wales need to fall by
nearly a fifth.
Some of this will come from wider trends toward lower meat and dairy consumption
— but it will also be driven by policies like the SFS, which incentivize farmers
to rely less on livestock. The Welsh government must “engage with farmers and
their communities, and support them to diversify their incomes,” the CCC said.
This advice has spooked farmers, who see a threat to years of family-owned
businesses.
“Would that mean I’d have to move away from here?” asked third-generation beef
farmer Tom Rees in his kitchen in Cowbridge, gesturing to the fields beyond the
window where his father and grandfather also farmed.
His farm slopes downhill toward a patch of land that often floods when a
neighboring river overflows. It’s sliced up into rectangular fields by colorful
hedgerows that act as corridors for local wildlife and as shelter for his cows
on sunny days — but planting hedges isn’t how Rees wants to earn a living.
“I went to college to study agriculture, to come on the farm because I wanted to
produce food,” he said. “I don’t want to plant a woodland.”
Rees hopes to pass the farm on to his 15-month-old son Henry — but is worried
about uncertainty over the SFS, as well as issues around bovine tuberculosis and
inheritance tax changes.
He said: “Dad’s left the farm in a better place than when he took it on. We want
to take it on a bit further, so we could leave it for Henry. … [But] with the
government in Westminster and the government in the Senedd — you just really
feel, Why are we bothering?
“It’s bang, bang, kick a man while you’re down. That’s what it feels like, and
that’s what a lot of farmers feel like in Wales.”
The Welsh government refused to comment on the SFS, confirming only that details
will be published this month.
A spokesperson said the government is “reviewing” the CCC’s advice, which will
inform decisions on a new climate goal for Wales before the end of the year.
“We’re trying to take forward a future for agriculture in Wales, which is to do
with thriving, living businesses and communities within Wales,” Huw
Irranca-Davies, Wales’ cabinet secretary for climate change and rural affairs,
told POLITICO in an interview last year.
ANNOYING VOTERS
Labour’s support has traditionally been low in rural Wales, where votes flow
instead to the Conservatives or Plaid Cymru. But the mess over agricultural
policies is deepening Labour’s woes, argued Cardiff University’s Larner.
“By annoying these people, you kind of block off the possibility that any of
these people at all will vote Labour,” he said, “So it’s just a kind of
narrowing of the vote pool in which you can fish for extra voters come other
elections.”
Meantime, Plaid Cymru and Reform are making their pitches to rural voters.
“You have to take the farmers with you on this journey. And that’s one lesson, I
think, that the Welsh government has learned the hard way,” said Llyr Gruffydd,
Senedd member for North Wales and Plaid’s agriculture and rural affairs
spokesperson.
Plaid will “reassess” the SFS when more details are published, Gruffydd said.
His party is not about to announce plans to “plow a different furrow,” he said,
but he didn’t rule out ditching the unpopular scheme either. When Plaid sees the
plans, Gruffydd argued, it can decide “whether this is something that we can
pursue, whether we feel we need to amend it — or, God forbid, whether we have to
say, let’s get back to the drawing board.”
Nigel Farage’s Reform, riding high in the polls and fresh from smashing Labour
in local elections in May, wants to scrap net-zero targets altogether. “Farmers
want lower costs to stay afloat. Net stupid zero adds costs for no benefit,”
said Deputy Leader Richard Tice.
Reform is set to benefit, too, from anger over the fate of Welsh steelmaking.
Thousands of job losses loom at the Port Talbot plant as it shifts to a
lower-emitting electric arc furnace, a political gift to Farage when he argues
that climate-friendly policies wreck traditional industries.
“That’s the one big example we’ve seen of net-zero related policy, and is one of
loss of jobs with not very much put in place to support workers to do anything
different,” said Joe Rossiter, co-director at the Institute of Welsh Affairs.
“When it all shakes out, I do think the fight will be Labour vs. Reform for the
top spot,” said one Labour insider who was granted anonymity to speak candidly.
The U.K. government “has been completely focused on making sure the transition
to green steelmaking is as good as it can be.”
Asked about the example of Port Talbot, Reader, the dairy farmer, was nervous
about the precedent it set for other climate policies. “If they damage Welsh
agriculture in the same way [as steel], I think that’s really letting down
Wales,” she said.
ALL IN IT TOGETHER
The Welsh government’s other big problem? It has cuddled up so tightly to
Westminster that Labour’s performance in Cardiff will rebound in London and
vice-versa.
“There’s no ‘other’ for them to blame, because they’ve tied themselves very
closely, rhetorically as well, to the U.K. government,” Larner said.
Some Welsh Labour MPs defend the U.K. government’s record. “If you look at the
amount of money that the Labour Party is investing in the agricultural sector,
that shows a huge commitment to the industry,” said Henry Tufnell, Labour MP for
Pembrokeshire.
After months spent arguing the benefits of having Labour governments in both
Cardiff and London, Senedd First Minister Eluned Morgan in May pivoted to
emphasize the divide between them. Expect more attempts to put “clear red water”
between the two camps, Larner said.
Yet when Starmer addressed the Welsh Labour conference in north Wales last
month, the old closeness was back. “Next year it’s a clear choice. Two Labour
governments working together for the people of Wales … or risk rolling back all
the progress we are making,” the prime minister said.
As Starmer spoke, a clutch of farmers protested outside. ‘Starmer: farmer
harmer,’ read one placard. Voters will say soon enough what they make of that
bond between Labour in Wales and Westminster.