👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

EU's eastern members demand import duties on Ukraine grains

Published 15/01/2024, 13:25
© Reuters. FILE PHOTO: Ukrainian flag is covered with grains in this picture illustration taken May 9, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

BUDAPEST (Reuters) - The European Union's eastern states are demanding the EU impose import duties on Ukraine grains, citing unfair competition, Hungary's agricultural ministry said on Monday.

The ministry said the farm ministers from Bulgaria, Poland, Hungary, Romania and Slovakia had sent a letter to the European Commission requesting the measures, saying cheaper agricultural products from Ukraine are eating into their export markets.

The five signatories are among six EU member states that produce significantly more wheat and maize than they need, which is key for European food safety and the EU's strategic sovereignty, the ministers said.

"This is why Brussels needs to introduce measures that protect the markets of member states bordering Ukraine while helping them make use of their full export potential," the letter signed by the ministers including Hungary's Farm Minister Istvan Nagy, said.

"One of these [measures] could be introducing import duties on the most sensitive agricultural products."

Ukraine's larger farm sizes make the country's grain exports cheaper and that is pushing EU farmers out of their traditional export markets, the ministers said.

Farmers in Bulgaria, Poland, Hungary, Romania and Slovakia "have suffered significant damages" since the EU suspended import quotas and customs on grain from Ukraine last year, they said.

The ministers are also calling on the European Commission, the bloc's executive, to examine in a report whether Ukraine's production guidelines are in line with EU standards.

The complaints were addressed to EU Trade Commissioner Valdis Dombrovskis and Farm Commissioner Janusz Wojciechowski.

Grain exports have been a rare source of tension between Kyiv and its EU neighbours as Bulgaria, Hungary, Poland, Romania and Slovakia became alternative transit routes for Ukrainian grain to help offset slower exports via Ukraine's Black Sea ports after the Russian invasion in 2022.

Farmers in those countries protested these shipments, claiming that they were distorting local markets.

Poland, Slovakia and Hungary announced restrictions on Ukrainian grain imports last September after the European Commission decided not to extend a ban on imports into Ukraine's five EU neighbours.

© Reuters. FILE PHOTO: Ukrainian flag is covered with grains in this picture illustration taken May 9, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

All three bans only apply to domestic imports and do not affect transit to onward markets.

Ukraine responded by complaining to the World Trade Organization against the three countries, while other EU members condemned the unilateral moves.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.