EU Grapples with Grain Trade Tensions

Grain Issues On Eastern European Markets

• According to Reuters, farm ministers from Bulgaria, Poland, Hungary, Romania, and Slovakia are requesting the EU Commission to implement measures against cheap Ukrainian grain.

• The signatories of this letter produce more grain than they consume and rely on grain exports.

• The ministers also call on the European Commission to examine whether Ukrainian agricultural goods meet EU standards.

Measures Taken

• Last spring, the EU imposed restrictions on Ukrainian agricultural products, allowing countries to ban the sale of certain goods from Ukraine, as noted by the Kyiv Independent.

• After the EU decided not to extend the restrictions on Ukrainian grain last September, Poland, Slovakia, and Hungary announced domestic restrictions on imports.

• Due to the Russian blockading of Ukrainian Black Sea ports, land routes must be made available to allow Ukrainian products to reach world markets.

EU's Response

• According to Polish Agriculture Minister Czesław Siekierski, the European Commission will extend its duty-free trade regime and dismiss Poland's tariff proposal.

• Siekierski emphasized that the EU must establish a mechanism to protect local markets, and this may take the form of licensing exported goods from Ukraine.

• France, Austria, and Germany are currently discussing the effects of duty-free trade on the agricultural markets of Europe and plan to propose a solution that will be acceptable to all participants in the future.