The two countries had implemented the ban to protect their farming sectors from cheaper imports, which they felt were a threat to their economy. The ban included grains, dairy products, sugar, fruits, vegetables, and meats and was to be effective until the end of June.
However, the European Commission stated that individual member states do not have the authority to formulate trade policy. The rejection of the ban has led to a debate about the Ukraine grain deal and whether it is working effectively. The majority of Ukrainian grain is exported through the Black Sea, but last year’s Russian invasion resulted in an interruption in export routes. This led to a surplus of Ukrainian grain that ended up in central Europe.
To overcome this challenge, a deal was brokered between Ukraine and Russia, allowing Ukraine to continue exporting through sea routes. However, the Ukrainian government has accused Russia of slowing down the process with excessive inspections, making it difficult for exporters.
The ban by Poland and Hungary came after complaints from local farmers, who claimed that they were being undercut by the cheaper Ukrainian grain in their local markets. While acknowledging the concerns of the farmers, the Ukrainian government has maintained that the ban contradicts bilateral trade agreements.
The Polish Economic Development and Technology Minister Waldemar Buda clarified that the ban would apply to goods in transit as well as those staying in Poland. He has called for talks with Ukraine to ensure that exports pass through Poland and do not end up on the local market. The Ukrainian Agriculture Ministry has stated that unilateral actions will not accelerate the resolution of the situation.
The rejection of the ban by the European Commission underscores the importance of coordination and alignment of decisions within the EU. While Poland and Hungary face uncertainty regarding the measures the European Commission will take against them, ministers from both countries and Ukraine are set to meet to discuss the issue. This presents an opportunity to find a mutually beneficial solution to the challenge posed by the influx of cheaper Ukrainian grain into local markets.
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