Poland plans to impose VAT on Ukrainian vegetable oil, cap sugar imports from Ukraine
MOSCOW. Feb 5 (Interfax) - The Polish Agriculture Ministry plans to propose charging 8% VAT on Ukrainian vegetable oil and capping sugar imports from Ukraine to Poland, Polish Deputy Agriculture Minister Michal Kolodziejczak said in an interview with TVP Info.
Poland's Agriculture Ministry is analyzing data, including what amount of frozen raspberries was delivered from Ukraine and Poland this year, Ukrainian media said, citing Kolodziejczak. Several hundred tonnes of frozen raspberries have been imported to date. The price of this produce makes growing fresh berries in Poland unnecessary.
Therefore, the Polish Agriculture Ministry wants import caps to be imposed and to increase the output of these products inside the country.
Speaking about the introduction of VAT on Ukrainian vegetable oil, Kolodziejczak said he is puzzled why vegetable oil should be imported at a 0% VAT rate, which is intended for Ukrainian producers.
Commenting on a farmers' 30-day nationwide strike, which is due to start on February 9 and will involve blocking crossings on the Polish-Ukrainian border, Kolodziejczak said that he supports farmers' decision, adding that "the border with Ukraine must be closed very tightly."
Kolodziejczak said he would ask the Road Transport Inspection to check vehicles carrying goods from Ukraine to Lithuania via Poland in order to make sure that the seal is not removed in Lithuania to enable the same vehicle with cargo to return from Lithuania to Poland.
The first changes will be carried out this week, Kolodziejczak said, adding that he would travel to Lublin on Monday to meet with the head of the local administration and subordinate services to decide on specific further actions.
The export of agricultural products from Ukraine to the European Union is squeezing Polish products from the European markets, and the results of veterinary inspections of Ukrainian agricultural exports' quality conducted at border crossings provide grounds to boost the presence of the Veterinary Service on the border, Polish Agriculture Minister Czeslaw Siekierski said, while visiting the Ukrainian-Polish border on February 4.
"Due to the large export of goods from Ukraine to EU countries, we are being squeezed from EU markets. In the context of the situation on the poultry market, the extensive export of one-day-old chickens from EU countries to Ukraine is something that puzzles us. There is a need for an in-depth analysis on the basis of detailed data," Ukrainian media quoted Siekierski as saying in a statement circulated by the Polish Agriculture Ministry's press service on social media.
Siekierski also expressed concern about the excessive import of sugar, sunflower oil and grain products, including flour and corn, to the Polish market. The end recipients of the majority of such exports are Baltic countries, namely Lithuania and Latvia, he said.
"It can be presumed that the goods transported there will be returned to Poland," he said.
Phytosanitary and veterinary inspections carried out on February 4 highlighted the need to tighten veterinary inspections on the border, Siekierski said after the visit to the Ukrainian-Polish border in Hrebenne.
"It is necessary to send additional veterinarians to work there," he said.
It was reported earlier that a nationwide strike of farmers initiated by the Solidarity independent trade union of farmers is due to start in Poland on February 9. According to information from the trade union's board, the reason behind the protest is the EU's proposal to renew the suspension of import duties and quotas on Ukrainian exports to the EU until 2025. The protests are expected to continue for 30 days, during which farmers intend to block all crossing points on the Ukrainian-Polish border.
The 2022 suspension of import duties in Ukraine-EU trade resulted in low-cost products from Ukraine ending up in neighboring countries, as Ukraine diverted much of its agricultural export to Europe. This situation sparked local farmers' protests. The agricultural sector of Poland, Slovakia, Hungary, Romania, and Bulgaria sustained the biggest losses.
Yielding to pressure from these countries, the European Commission was forced to take exceptional and temporary preventive measures in May 2023, banning the import of Ukrainian wheat, maize, rapeseed and sunflower seed to Bulgaria, Hungary, Poland, Romania, and Slovakia. After the ban was lifted in mid-September, Hungary, Slovakia and Poland, acting against the European Commission's will, imposed import restrictions at the national level. Poland, for its part, expanded the list of banned imports to include rapeseed cake and meal, as well as corn bran, wheat flour, and derivatives. Hungary expanded the list to 24 items. Kiev responded by lodging a complaint with the World Trade Organization. All negotiations involving the European Commission have been suspended as the WTO reviews the complaint.
The Ukrainian government, seeking to unblock the export of agricultural products to the EU, began requiring local exporters to verify and license the exports of wheat, corn, rapeseed and sunflower seed to Bulgaria, Romania, Slovakia, Hungary and Poland.