Brussels was shocked when, on April 15, Poland and Hungary announced they would block all food products coming from Ukraine until the end of June. The measure was a direct response to the drop in prices on local markets because of the influx of foodstuffs from Ukraine.
Slovakia and Bulgaria soon followed suit, with Romania still mulling such a ban. These countries, which have been among Kyiv's biggest political supporters within the EU, have been struggling with two key initiatives the EU introduced last year to alleviate economic pressure on Ukraine.
The first was the solidarity lanes, which were aimed at facilitating the export of Ukrainian goods, mainly agricultural, to the EU and beyond via European roads, rail, and waterways as Ukrainian Black Sea ports faced Russian blockades. The second measure was the decision by the bloc in June 2022 to remove all tariffs and duties on Ukrainian goods entering the EU for one year.
The unilateral moves by Poland and Hungary cause a real dilemma for Brussels as trade policy is an exclusive EU competence, meaning member states legally cannot act alone. At first there were rumors Brussels would take measures against Budapest and Warsaw, either via fines or dragging them to court, but now there seems to be an understanding that farmers in countries neighboring Ukraine really are suffering.
To give a little perspective: In 2021, Poland imported 2,800 tons of wheat from other countries. In 2022, that number had risen to 500,000 tons. For maize, the increase was even more extreme, with imports reaching a staggering 1.8 million tons in 2022, compared to 5,800 tons the previous year. Poland is no outlier. Similar figures can be found in the other so-called frontline states.
Deep Background: On April 18, a few days after announcing it would block imports, Warsaw signaled it had struck a deal with Kyiv in which all Ukrainian products would be allowed to transit Poland but not enter its market.
According to the deal, which became valid on April 21, truck convoys with sealed goods would be monitored via GPS. While Brussels welcomed this as a first step, it is still looking for a uniform solution so as not to create trade imbalances on the EU's single market.
European Commission officials met with the trade ministers of Bulgaria, Hungary, Poland, Romania, and Slovakia, as well as their Ukrainian counterpart, in Brussels on April 19 with the hope of finding a common agreement. The EU proposed the introduction of safeguarding measures that could be taken immediately and would last until June 30 on four Ukrainian products: wheat, maize, rapeseed, and sunflower seeds.
Under the proposed measures, these four food products could transit the five EU countries but not stay there -- with Brussels pledging to consider putting other foods on the list. While this was similar to the deal Poland struck with Ukraine, the five affected countries didn't give the EU proposal the thumbs up, as they were also looking for safeguards on eggs, poultry, honey, and various berries.
Drilling Down:
By RFE/RL
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