EU says unilateral action on trade unacceptable after grain import bans

WARSAW (Reuters) – Unilateral action on trade by European Union member states is unacceptable, a European Commission spokesperson said on Sunday, after Poland and Hungary announced bans on grain and other food imports from Ukraine to protect the local agricultural sector.

After Russia’s invasion blocked some Black Sea ports, large quantities of Ukrainian grain, which is cheaper than that produced in the European Union, ended up staying in Central European states due to logistical bottlenecks, hitting prices and sales for local farmers.

The issue has created a political problem for Poland’s ruling nationalist Law and Justice (PiS) party in an election year as it has angered people in rural areas where support for PiS is usually high.

“We are aware of Poland and Hungary’s announcements regarding the ban on imports of grain and other agricultural products from Ukraine,” the spokesperson said in an emailed statement. “In this context, it is important to underline that trade policy is of EU exclusive competence and, therefore, unilateral actions are not acceptable.”

“In such challenging times, it is crucial to coordinate and align all decisions within the EU,” the statement added.

Poland and Hungary have been embroiled in long-running conflicts with Brussels over issues including judicial independence, media freedoms and LGBT rights, and both have had funds withheld due to concerns over the rule of law.

TRANSIT

The Polish ban, which came into effect on Saturday evening, will also apply to the transit of these products through the country, the development and technology minister said on Sunday.

“The ban is full, including the ban on transit through Poland,” Waldemar Buda wrote on Twitter, adding that talks would be held with the Ukrainian side to create a system that ensures goods only pass through Poland and do not end up on the local market.

Ukraine’s ministry of agrarian policy and food said on Saturday that the Polish ban contradicted existing bilateral agreements on exports, and called for talks to settle the issue.

Ukraine’s state-run Ukrinform news agency said Ukrainian and Polish ministers are due to meet on Monday in Poland and the transit arrangement would be focused on in the talks.

Poland’s Agriculture Minister Robert Telus (NYSE:) was quoted as saying on Sunday that the ban was necessary to “open the eyes of the EU to the fact that further decisions are needed that will allow products from Ukraine to go deep into Europe, and not stay in Poland.”

Ukraine exports most of its agricultural goods, especially grain, via its Black Sea ports, unblocked in July in line with an agreement between Ukraine, Turkey, Russia and the United Nations.

Around 3 million tonnes of grain left Ukraine every month via the Black Sea grain corridor while only up to 200,000 tonnes are moving to European ports through Polish territory, according to the Ukrainian ministry.

Ukraine’s farm minister Mykola Solsky said at the weekend that 500,000 to 700,000 tonnes of various agricultural products cross the Polish border every month, including grain, vegetable oil, sugar, eggs, meat and other products.

Source link