Poland and four other EU member states asked Brussels on Wednesday to extend trade curbs on Ukrainian grain amid concerns that Russia’s blockage of Black Sea shipments could put further pressure on their domestic markets.
Poland, Hungary, Slovakia, Bulgaria and Romania have restricted imports of Ukrainian grain since last spring in response to protests by their farmers about a grain glut that sent cereal prices crashing and which they blamed on Ukrainian imports.
In May, Brussels persuaded them to drop unilateral measures, which violated EU trade law, by agreeing that Ukrainian shipments would only transit through the five countries on route to other destinations. The EU also handed out €100mn to the affected countries.
Ukrainian grain has provoked an embarrassing U-turn for Poland, one of the staunchest western supporters of Kyiv’s war against Russia. Poland has led calls for solidarity with Ukraine and last year Warsaw backed the EU removing tariffs on Ukrainian foodstuffs to help its economy.
But ahead of a fiercely contested national election this autumn, the rightwing government in Warsaw has grown worried about losing the support of farmers who are a cornerstone of its electorate.
The demand for an extension of controls beyond mid-September is likely to meet strong resistance. Several member states whose own industries have suffered from sanctions on Russia are annoyed that Poland and others are seeking special treatment.
“The initial illicit grain blockade was like the camel’s head under the tent. By giving in to the demands of these countries, it’s now become excessively hard for the commission to counter the further escalation of these issues by Poland,” said one diplomat.
But Polish prime minister Mateusz Morawiecki warned Brussels against preventing what was agreed by the five countries on Wednesday.
“Either the European Commission will agree to develop common regulations that will extend this ban, or we will do it ourselves,” Morawiecki told a news conference in Warsaw. “We will be tough, determined and we will certainly defend the Polish farmers.”
Russia’s decision this week to end its Black Sea grain deal puts further pressure on Ukraine to find other ways to export its huge cereals output. The EU and the US have condemned Russia’s exit from the deal as a dangerous decision that threatens world food security, particularly in poorer countries in the southern hemisphere.
Poland and the other EU countries close to Ukraine say that Brussels has failed to guarantee that Ukrainian food exports would be sent to Africa and the Middle East rather than flooding domestic markets.
Since May, Polish farmers have continued to call on their government to extend restrictions to strawberries and other seasonal foodstuffs that are grown more cheaply in Ukraine and have also reduced prices in the EU.
The five countries also say the EU should be more flexible to allow individual member states to add items to the list of banned Ukrainian exports. They will raise their concerns at a meeting of agricultural ministers in Brussels on Tuesday and want an extension of their existing cereal restrictions until the end of this year.
An EU official said the border states still had “significant stocks” of Ukraine grain but the “solidarity lane” scheme introduced in May was “easing the situation”.
Several other countries told a meeting of member states last week that Ukrainian imports were “putting pressure” on their farmers, the official said. There have been significant imports of poultry and eggs, reducing prices.
A European Commission spokesperson said it was “working intensively with the five frontline member states, Ukraine and Moldova to solve logistical problems and increase the capacity of the solidarity lanes”.
Source: Economy - ft.com
