2023-04-19 15:38:46
He second aid package to compensate countries affected by imports of grain y Farm products from Ukraine, entering the European market last year free of tariffs and quotas to facilitate their transit to third countries, will amount to €100 million. Although the European Union adopted a first package of 56.3 million Just three weeks ago, the pressure in the countries bordering Ukraine, which denounced the impact of the fall in prices in local markets due to the avalanche of Ukrainian products, has not stopped growing in recent weeks and the European Commission has has been forced to promise more money and accept that border countries may temporarily restrict imports, except for transit to other countries.
The decision follows the announcement this past weekend of Poland and Hungary to unilaterally restrict Ukrainian imports in a move mirrored by Slovakia and Bulgaria. These four countries, along with Romania, They sent a letter to the president of the European Comission, Ursula von der Leyen, at the end of March expressing concern about the impact of the presence of Ukrainian agricultural products in their respective markets and calling for solutions. “You need a common european approach. Unilateral measures can only play into the hands of Ukraine’s adversaries and must not erode our unwavering support for this country,” the German responded in a letter addressed to the leaders of the five eastern governments.
In her letter, the president of the Commission reminds them that the solidarity runners Created last year by the EU to allow Ukraine to export its grain “are crucial” for kyiv’s resistance to Russia’s war of aggression and must continue to function. “Ukraine’s exports must continue to reach markets around the world, including developing countries,” adds the German, who admits, at the same time, that the EU must deal with the “unforeseen consequences” of the unexpected increase in imports. to European countries. “The truth is that there is a problem of excess supply in these countries and there is a problem getting Ukrainian exports to other parts of the EU and also to the rest of the world,” sources from the Community Executive admit with understanding.
three lines of action
To respond to these difficulties, Brussels proposes adopting “emergency measures” with three lines of action. First, give more money to affected farmers, with a new proposal of 100 million which would be added to the 56.3 million -29.5 million for Poland, 16.75 million for Bulgaria and 10 million for Romania- approved on March 30 for compensate affected farmers for the economic losses generated by the avalanche of Ukrainian grains and oilseeds. The intention is to act quickly, although Brussels has not yet given any clues as to when this new line of aid could arrive.
Von der Leyen urges the five EU countries affected by imports to apply a “European approach” and avoid “unilateral” measures
Secondly, Brussels proposes the adoption ofprecautionary measures“ in commercial matters for certain categories of grain, particularly when wheat, corn, rapeseed and sunflower seeds. The five countries that have denounced disturbances in their markets would therefore have a free hand to limit imports of Ukrainian cereal, which would only cross their countries in transit to other Member States and third countries. “The only requirement is to inform the customs code committee. It is an EU measure that would replace the unilateral measures adopted by four of the five countries, which would have to eliminate them,” explained European sources about the activation of a safeguard clause included in the regulation on autonomous trade measures.
Thirdly, the European Commission will launch investigations into the effects on other sensitive products and determine if it is necessary to extend the emergency measures. The vice president of the Community Executive, Valdis Domvroskisplans to discuss the measures with representatives of the five affected countries as well as with the Ukrainian Minister of Agriculture, Mykola Solsky“to facilitate their work and their understanding of the situation in this market and the possible landing zones,” explained the spokesperson for Von der Leyen.
Ukrainian agricultural products have benefited since June last year from a exemption from quotas and tariffs (expires in June 2023) that the European Commission has proposed to extend for another year, until June 2024, with the aim of making it easier for products to leave the country and reach third countries, given the limited capacity to export through the Black Sea ports. Until the start of the war in Russia, these ports were the exit gate for 90% of the grain, although since then they have been practically blocked and most have moved to the western border of Ukraine.
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To reassure the 5 affected countries, Von der Leyen explains in his letter that the extension proposal includes a safeguard mechanism with stricter provisions, monitoring and reporting to Member States, lower trigger thresholds and a shorter evaluation period. “This specifically responds to the concerns of the bordering Member States and stakeholders, including farmers, and will allow us to react even more quickly in the future to protect the EU market if necessary,” says Von der Leyen, who commits in the letter to work “more intensely” to facilitate the transit of agricultural products both to other Member States and to third partners, with the aim of alleviating the pressure in the short term on the countries bordering Ukraine and at the same time helping to ensure world food security.
Brussels argues that if production remains in neighboring countries it is due to the high logistics costs that currently represent 40% of the total when they should not be more than 10%. “We still have 4 million tons of grain left from the last harvest so we will need more or less two months to export it. And then we have the new harvest in the fall. We really need to improve all the ways of solidarity and ensure that transit is really facilitated. “, maintain the same sources.
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