The European Commission announced on Friday that Ukraine has agreed to take measures to control grain exports to the European Union to avoid saturation of the markets of Poland, Hungary, Bulgaria, Slovakia and Romania. For this reason, Brussels has decided to lift the temporary veto that, since May, meant that wheat, corn, rapeseed and sunflower seeds originating in Ukraine could not be sold in these countries, although they were transported through them to other countries could become. EU member states or third parties. However, the decision was not well received by several concerned governments, which had already announced new vetoes.
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The temporary veto was approved in May and extended in June, with the idea that it would “gradually” disappear until its final end this Friday. However, in recent days several of the affected countries, notably Poland and Hungary, had threatened to reimpose their own bans if the measures agreed in Brussels were not extended. Poland, Hungary and Slovakia announced that they would take unilateral measures shortly after the announcement from Brussels.
The first was Budapest, which quickly decided to impose a new national import ban on 24 Ukrainian agricultural products, including grains, vegetables and various meat products, Portal reports. Shortly afterwards, similar news arrived from Slovakia and Poland.
“Due to the erroneous decision of the Commission and in accordance with the instructions of the [primer ministro] Mateusz Morawiecki and the entire Council of Ministers, I have signed a national law maintaining the embargo,” Polish Development Minister Waldemar Buda announced on X (formerly Twitter). The three new vetoes are limited only to domestic imports and will not affect the transit of Ukrainian products to other markets, Portal emphasizes. Nevertheless, the decision clashes directly with the position of Brussels, which recalled on Friday that trade policy falls within its “exclusive competence”.
In a statement, the European Commission indicated that after analyzing data on the “impact” of exports of these four products on the European market, it concluded that “the market distortions exist in the five neighboring member countries.” The Ukraine has disappeared.”
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Without mentioning the threats of recent days from several affected capitals, Brussels emphasizes the “constructive attitude” of all those involved, which has made it possible to “resolve specific problems and ensure that imports flow to third countries outside the EU and even increase”. .”
For this reason, he adds, it has been agreed that the “temporary and exceptional” measures for the four Ukrainian grains will “expire” at midnight this Friday, as planned.
In return, “Ukraine has agreed to introduce legal measures such as an export licensing system in the next 30 days to prevent a further increase in grain flows to neighboring EU member states.” Until then, Kiev will take “effective measures” to control the export of the four grain groups are taking action to avoid new distortions and will present an “action plan” to Brussels and the five countries involved by next Monday at the latest.
As long as these conditions are met, which will be monitored by the EU-Kyiv “joint coordination platform” created in June to monitor the situation, the Commission will “refrain from introducing new restrictions”, Brussels has promised.
Splitting support for Ukraine
Last spring, Poland, first Hungary, then and gradually the rest of the above-mentioned countries caused the first crack in the EU’s previously iron-clad support for Kiev by announcing that they were rejecting imports of Ukrainian grain and other foodstuffs from the country would in war. These products have been duty-free and tax-free in the EU since June 2022, thanks to one of the measures aimed at European support for the Ukrainian economy and to reduce the global food crisis, aggravated by the Kremlin’s blockade of Ukrainian ports, one of the breadbaskets of the world . However, this exception sparked strong protests from farmers in Poland and Hungary, who claimed that the duty-free arrival of these products from Ukraine oversaturated their markets and led to a fall in local prices.
After tough negotiations, the European Commission announced on May 2 an agreement taking “extraordinary and temporary preventive measures” affecting four agricultural products – wheat, corn, rapeseed and sunflower seeds – of Ukrainian origin; in return for the countries that had joined the veto on Ukrainian food at the time (Bulgaria, Slovakia and Romania, as well as Poland and Hungary) lifting it. The temporary pact, initially in force until June 5 and to which a package of 100 million euros for affected farmers was added, meant that these four products could not be sold in these countries, although they could be exported through them to other EU -States could be transported to members or third countries.
Finally, in June, while extending the suspension of tariffs and taxes for Ukraine for another year, the Commission decided to maintain the veto on Ukrainian grain in the five countries, citing “extraordinary circumstances of serious logistical bottlenecks and limited grain storage capacity before harvest “. However, he added that these extraordinary measures should be phased out “gradually” until they disappear completely on September 15.
The five recipient countries and the EU also agreed to create a common coordination platform with the participation of Kyiv “to improve the flow of trade between the Union and Ukraine, including the transit of agricultural products.” This platform met up to nine times during the summer; Nevertheless, in recent days most of the countries involved in the veto – all except Bulgaria – have expressed their intention to maintain it even if the Commission decides to revoke the temporary agreement.
“We will not open our borders. “Poland will not allow us to be flooded with Ukrainian grain,” Polish Prime Minister Mateusz Morawiecki said on Wednesday. Hungary, Slovakia and Romania also assured this week that they will continue to ban imports of wheat, corn, rapeseed and sunflowers. Only Bulgaria stood out and announced that it would lift the veto. Given the threats of an extension of the veto that Hungary has already put into practice – and despite the Commission also reminding this week that trade policy is its responsibility -; According to Efe, Ukraine has threatened to turn to the World Trade Organization (WTO) to denounce Poland and countries that “violate the rules” of international trade.
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