Ukraine to keep limits on agricultural trade with EU for now, awaiting agreement on export procedures
MOSCOW. Sept 26 (Interfax) - Ukraine has developed a procedure for verifying the exports of four agricultural crops in accordance with the decision of the European Commission and has not yet exported agricultural products to five border countries without their approval, Ukrainian media reported, citing Ukrainian Minister of Agrarian Policy and Food, Nikolai Solsky during a meeting of ministers of agriculture of the Visegrad Group countries (Poland, Czech Republic, Slovakia and Hungary) on Tuesday.
"We are introducing an internal procedure for verifying the export of four crops (corn, rapeseed, sunflower, wheat) to five EU countries. This procedure provides for the issuance of a license from the Ukrainian government within 30 days from the date of receipt of the export application. The corresponding government resolution has already been adopted, and therefore exports to the five countries no longer occur without their approval. During the 30 day period, Ukraine informs the European Commission and the relevant country about the receipt of an export application," the minister said in an announcement on the website of the Ministry of Agrarian Policy of Ukraine.
The mechanism, where exports are not carried out without the consent of a neighboring country, is as constructive and understandable as possible and takes into account the interests of all parties, Solsky assured and added that Ukraine has sent proposals to neighboring countries on how exactly this mechanism will operate. Ukraine expects answers and possible solutions from them. To date, the only official response has come from Romania.
As previously reported, the agricultural sectors in Poland, Hungary, Slovakia, Romania and Bulgaria were under attack due to duty-free shipments of cheap food to the EU from Ukraine, which entered the markets of these countries and brought down the prices of local products. Under pressure from these five states, the European Commission in May introduced a ban on the import of a number of Ukrainian agricultural crops (wheat, corn, rapeseed and sunflower), which was in effect until September 15.
After the restrictions were lifted, Poland, Hungary and Slovakia introduced unilateral bans, and Bulgaria thought about placing quotas on the import of Ukrainian sunflower. Poland has expanded the list of Ukrainian products prohibited for import to include rapeseed cake and meal, as well as corn bran, wheat flour and derivative products. Hungary increased its list to 24 items.
Ukraine filed a lawsuit with the World Trade Organization, accusing Poland, Hungary and Slovakia of discriminatory treatment of Ukrainian agricultural products.
This week, the Ministry of Agrarian Policy of Ukraine will hold negotiations with Poland, Slovakia and Hungary, as well as Bulgaria and Romania, to resolve the verification mechanism. The next meeting of the working group on the export of Ukrainian agricultural products at the European Commission is scheduled for September 28.