Warsaw, 17 April 2023 (GNP): Poland and Hungary banned imports of Ukrainian grain and other food products on Saturday amid a spike in low-cost products.
The ban will last until the end of June in Poland. Ban includes imports of grain, sugar, meat, fruits, vegetables, milk, eggs, and other food products.
Polish Economic Development and Technology Minister Waldemar Buda made it clear on Sunday that the ban applies to both products entering and leaving Poland.
The intent of the ban, according to the Polish prime minister’s office, was “to protect the Polish agricultural market against destabilization”.
According to Ukraine, the measure violates the bilateral trade accords.
On Saturday, the Ukrainian Ministry of the agrarian policy stated in response to Poland’s declaration that it “regrets the decision”.
It said, “Polish farmers are facing a difficult situation, but we emphasize that Ukrainian farmers are facing the most difficult situation,” due to war.
Ukrainian Ministry also added that Ukraine had “always been sympathetic to the situation in the Polish agricultural sector and responded promptly to various challenges. At present, unilateral drastic actions will not accelerate the positive resolution of the situation.”
Following its invasion, grain exports from Ukraine have been headed to other countries through the European Union as Russia closed the ports and sea lanes that were used to ship grain from Ukraine to Africa and the Middle East.
Since then, Ukrainian grain has streamed into Poland where a large amount of it has remained there, driving down the price and leaving Polish farmers with huge financial losses. Farmers in central and eastern Europe have been protesting over importing Ukrainian grain.
Local farmers claim they cannot compete with the cost of Ukrainian grain and have urged the European Commission for compensation.
Growing resentment is provoking the resignation of the Polish agricultural minister since when the European Commission released a draft resolution to continue duty and quota-free imports of Ukrainian grain until June 2024.
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István Nagy, the Agriculture Minister for Hungary, also declared on Sunday that the country will temporarily ban the import of grain, oil seeds, and other agricultural products from Ukraine, claiming the action was required “in the absence of meaningful EU measures.”
According to Budapest, “the government expects a permanent solution and the adoption of EU measures” during the ban.
However, On Monday, European Union’s executive branch decried the bans Poland and Hungary placed declaring that it is not the task of members alone to determine trade policy.
“It is important to underline that trade policy is of EU exclusive competence and, therefore, unilateral actions are not acceptable,” said Arianna Podestà, the commission’s spokeswoman.
She also added, “In such challenging times, it is crucial to coordinate and align all decisions within the EU.”
To address the situation the foreign ministers of Poland and Hungary are scheduled to meet in Poland on Monday.
Similar criticism has been voiced in Bulgaria, where producers have complained about having warehouses full of goods they are unable to sell.
“Bulgaria is in solidarity with Ukraine, but a local glut is being created on the agricultural market because instead of export corridors, our countries are becoming warehouses,” said Yavor Gechev, Bulgaria’s minister of agriculture.
