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Ukraine is suing Poland, Hungary and Slovakia over the import of agricultural products
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Ukraine is suing Poland, Hungary and Slovakia over the import of agricultural products

created Lukasz Klufczynski19 Września 2023

Ukraine plans to sue Poland, Hungary and Slovakia to the World Trade Organization (WTO) in connection with the bans they introduced on the import of Ukrainian agricultural products. These three countries recently introduced import restrictions on Ukraine's key exports. These bans come after the European Union (EU) allowed its own restrictions to expire.

“The lawsuit may be sent in the near future.” – said a senior official, following the decision of three countries bordering Ukraine to ban the import of the country's key export goods.

Restrictions imposed by the European Union in May allowed Poland, Bulgaria, Hungary, Romania and Slovakia to ban domestic sales of Ukrainian products. wheat, corn, rapeseed and sunflower seeds, while allowing the transit of these cargoes for export elsewhere.

Poland, Slovakia and Hungary announced their own restrictions on imports of Ukrainian grain last Friday after the European Commission decided not to extend an import ban to five of Ukraine's EU neighbors. Warsaw, Bratislava and Budapest say they are acting in the interest of their economies and farmers. Ukraine may also impose reciprocal measures on the import of fruit and vegetables from Poland if Warsaw does not waive additional measures.

Polish Minister of Agriculture Robert Telus said that the Warsaw ban covers four cereals, but has also been extended to meals from these cereals: corn, wheat and rapeseed.

The PAP news agency quoted Radosław Fogiel, head of the Polish Parliamentary Foreign Affairs Committee, as saying that Ukraine's decision to file a lawsuit "will have a negative impact in Poland" and that Ukraine should be aware of this.

"Our decision is not aimed at Ukraine, it is dictated by the protection of the Polish farmer and the protection of Poland's interests." - He said.

The European Union allowed the ban to expire on Friday after Ukraine said it would take action to tighten export controls to neighboring countries.

Kyiv said he was ready "take responsibility for ensuring that exports from Ukraine do not cause a tsunami in neighboring countries" and will introduce a system of real-time grain export permits.

Data from the Ministry of Agriculture showed that 1,4 million tons of Ukrainian agricultural goods left the country by rail in the first three months of the 2023/24 July-June season out of a total export volume of 4,5 million tons. Ukraine sends grain by train through border crossings with Poland, Slovakia and Hungary. Ukraine also sent an additional 1 million tons of oils and oilseeds by rail.

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About the Author
Lukasz Klufczynski
Chief Analyst of InstaForex Polska, with the Forex market and CFD contracts since 2012. He gained his knowledge in many financial institutions, such as banks and brokerage houses. He conducts webinars in the field of technical and fundamental analysis, investment psychology and MT4/MT5 platform support. He is also the author of many expert articles and market commentaries. In his trading, he puts emphasis on fundamental elements, relying on technical analysis.