European Commission has rejected bans introduced by Poland and Hungary on Ukrainian grain imports
The European Commission has rejected bans introduced by Poland and Hungary on Ukrainian grain imports to safeguard their farming sectors from cheap imports.
Poland and Hungary imposed the ban after local farmers said that they were being undercut by cheaper Ukrainian grain flooding their markets. The ban applies to grains, dairy products, sugar, fruit, vegetables and meats and will be in force until the end of June 2022. Poland and Hungary said that the bans are necessary to protect their own farming sector.
The European Commission said it is not upto individual Member States to make trade policy. The European Commission lifted tariffs on Ukrainian grain last year to help transport it to the rest of the world amidst Russia’s invasion, but the exports have led to a glut of produce in Europe. As a result, farmers in Poland, Hungary and other nations have seen their incomes plummet.
The announcement came after Poland reached a deal with Ukraine on Friday, i.e., April 15, 2023 to strictly limit and, for a time, halt Ukrainian grain deliveries to Poland. That deal was expected to affect Ukrainian grain, wheat, corn and some other produce, but on Saturday, i.e., April 16, 2023, Poland expanded it to include dozens of other types of food. Ukraine has said the move contradicts bilateral trade agreements.
A statement by Ukraine’s Agriculture Ministry said it had always been sympathetic to the situation in the Polish agricultural sector and responded promptly to various challenges.
The Statement read, “At present, unilateral drastic actions will not accelerate the positive resolution of the situation.”
Most of the Ukrainian grain is exported via the Black Sea, but Russia’s invasion last year disrupted export routes and resulted in large quantities of the grain ending up in central Europe. A deal with Russia, brokered by the United Nations (U.N.) and Turkey, allowed Ukraine to continue exporting by sea. However, Ukraine has accused Russia of slowing the process with over-zealous inspections.
The Polish Minister of Economic Development and Technology – Waldemar Buda clarified that the ban applied to goods in transit as well as those staying in Poland. He called for talks with Ukraine to set up a scheme to ensure exports pass through Poland and do not end up on the local market.
The Hungary’s Agriculture Minister said that in the absence of meaningful E.U. measures, his country would follow Poland in restricting Ukrainian grain imports until the end of June 2023.
