2023-09-16 02:12:40
Towards a new standoff? Brussels announced on Friday the end of the ban imposed by five EU states on the import of Ukrainian grain, in return for a commitment from Kiev to control the influx of grain – at the risk of offending Warsaw, Bratislava and Budapest who intend to maintain their restrictions.
At the end of April, the European Commission concluded an agreement with five Member States (Poland, Hungary, Slovakia, Bulgaria, Romania) allowing them to block the marketing of Ukrainian wheat, corn, rapeseed and sunflower on their soil in order to protect their farmers, on condition that they do not prevent the transit of cereals to other countries.
Following the lifting of EU customs duties in May 2022, these countries had in fact seen an influx of cereals at cut-off prices from Ukraine, but blocked on their soil due to logistical problems instead of joining the Africa and the Middle East. Several had unilaterally banned imports, to stem the saturation of their silos and the collapse of local prices.
kyiv welcomes “respect for free trade rules”
Restrictions that Brussels – guardian of EU trade policy – then formally authorized and then extended until September 15, provided that these countries maintain the passage of grains to other destinations. “Thanks to these temporary measures, market distortions in these five states have disappeared”, and the improvement in logistical conditions has made it possible to increase the delivery of cereals to other countries, welcomed the Commission. “As a result, the existing measures will expire today.”
kyiv, fiercely opposed to restrictions, welcomed “respect for free trade rules”: “This is an example of true unity and trust between Ukraine and the EU. Europe always wins when the rules work and agreements are implemented,” responded President Volodymyr Zelensky.
I just spoke with @vonderleyen.
All previous European Commission restrictions on Ukraine’s agricultural exports have now been lifted.
I thanked Ursula von der Leyen for keeping her word and upholding the rules of the single market. This is an example of Ukraine and the EU…
— Volodymyr Zelenskyy / Volodymyr Zelensky (@ZelenskyyUa) September 15, 2023
Anxious to give assurances to Eastern countries, the Commission specifies that in return, Kiev has undertaken to adopt within one month measures to “avoid surges” in grain volumes, for example via an export licensing system. Until then, Ukraine will put in place “effective measures” to control exports and avoid destabilizing border countries. kyiv will have to submit an “action plan” to Brussels by Monday evening, which promises not to reimpose restrictions “as long as the measures taken are fully effective”.
“Farmers’ Interests”
Not enough to convince Poland and Hungary, who immediately announced that they would unilaterally maintain their ban on the import of Ukrainian cereals. And this in violation of the decision taken by the Commission, which has sole jurisdiction over EU trade policy – at the risk, as in the spring, of a political and legal standoff with Brussels.
“Hungary will close its borders to 24 Ukrainian products”, therefore much more than the four currently concerned, in order to “protect the interests of our farmers”, indicated Hungarian Minister of Agriculture Istvan Nagy. And one month before elections in Poland, the populist right-wing government is making it “a fundamental question”. “We will undoubtedly defend the interests of Polish farmers,” said Prime Minister Mateusz Morawiecki, whose Law and Justice party enjoys strong support in agricultural regions.
“If the decisions of our neighbors violate EU law, Ukraine will react in a civilized manner,” warned Volodymyr Zelensky. kyiv threatens to seize the World Trade Organization (WTO) to demand compensation.
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