EU countries neighboring Ukraine ask Brussels to introduce import duties on Ukrainian agricultural products
MOSCOW. Jan 16 (Interfax) - The Ministers of Agriculture of Bulgaria, Poland, Romania, Slovakia and Hungary, in a joint letter to the European Commission, demanded the introduction of import duties on Ukrainian grain due to dumping-level prices in countries neighboring Ukraine, Ukrainian media reported citing a press release from the Hungarian Agricultural Ministry.
"In a joint letter, the agriculture ministers of the bordering EU member states once again call on the European Commission to act so that Brussels can find a solution and help farmers cope with the market turmoil caused by Ukrainian agricultural products," Hungarian Agricultural Minister Istvan Nagy said.
He said that since the suspension of import duties, quotas and trade protection measures for Ukrainian exports to the European Union, farmers in neighboring countries have suffered significant losses. Therefore, agriculture ministers from Bulgaria, Poland, Hungary, Romania and Slovakia wrote a joint letter to the Deputy President of the European Commission, European Commissioner for Trade Valdis Dombrovskis and European Commissioner for Agriculture Janusz Wojciechowski, in which they presented to Brussels the change in the dynamics of exports of Ukrainian products to the EU, which has led to the loss of markets for selling grains and oilseeds in countries bordering Ukraine.
The minister said that, in recent years, in addition to problems caused by high production costs, increased price risks and unfavorable climatic conditions, the growth of exports from Ukraine is causing increasing concern among farmers. The main reason for this is that Ukrainian agricultural products, which are cheaper due to different production standards and farm sizes, are displacing the products of EU farmers from traditional export markets.
"This, together with the changes brought about by new EU policies, represents a major burden on agricultural production," he said.
Nagy noted that the five border countries are among the six EU member states that can produce significantly more wheat and corn than they need, so the contribution of their farmers to European food security and the EU's strategic autonomy is important.
"Brussels must introduce measures that protect the markets of EU member states bordering Ukraine, and at the same time provide them with the opportunity to use their export potential. One such opportunity could be the introduction of customs duties on the most sensitive agricultural products," the minister said.
Nagy also said that the common position of the five countries is that Ukrainian agricultural exports should no longer negatively influence the European agricultural market. Brussels must therefore also ensure consistent implementation of EU agricultural standards for all products offered to European consumers. He called on the committee to report on how Ukrainian production standards stand up to EU agricultural production standards.
The interests of Hungarian farmers will be "protected by all means from Ukrainian dumped goods and agricultural products, often of dubious quality," the minister said.
As previously reported, the duty-free trade regime between Ukraine and the EU introduced in 2022 (and valid through June 2024), insofar as it reoriented a significant part of Ukrainian agricultural exports to Europe, led to cheap food from Ukraine ending up in neighboring countries: Hungary, Slovakia , Poland, Bulgaria and Romania. This sparked protests from local farmers.
Under pressure from these countries, the European Commission was forced to take special measures in May 2023, banning the import of Ukrainian food into these states (specifically, wheat, rapeseed, sunflower and corn). After the ban ceased to apply in mid-September, Hungary, Slovakia and Poland, contrary to the will of the European Commission, introduced prohibitive measures at the national level. Moreover, Poland expanded the list of products prohibited for import to include rapeseed cake and meal, as well as corn bran, wheat flour and derivative products. Hungary increased this list to 24 product items. Kiev responded by filing a complaint with the World Trade Organization (WTO). Currently, WTO proceedings are suspended for negotiations with the participation of the European Commission.
Negotiations are underway on the introduction by Ukraine of a mechanism for licensing the export of its agricultural products with mandatory verification in each of the five countries.