For the Ukrainian economy, the ability to export agricultural products is a matter of survival and defense capability. That is why Ukraine is initiating arbitration proceedings and preparing a claim against Poland, Slovakia and Hungary under the World Trade Organization (WTO) procedures in response to the prohibition on grain supplies to these countries.
Denys Marchuk, Chairman of the UAC, explains why Ukraine is applying to the WTO and why the actions of Poland, Hungary and Slovakia are legally wrong:
"Each of the Eurozone countries is protecting its own interests, and it is especially important for Ukraine to do so, as the country's main efforts are aimed at defense. The economic precedents set by some European countries, such as Poland, Hungary, and Slovakia, do not allow exports and hit the Ukrainian economy. Ukrainians must defend themselves, because it is a matter of survival. That is why today the government is initiating an arbitration procedure and formulating a claim against Poland, Slovakia and Hungary under WTO procedures, as the issue is much broader and does not concern only Ukraine. The EU was created as a duty-free trade area, and unilateral decisions by individual countries create political tension. In order not to escalate the confrontation, the WTO will look for a solution, but a compromise will be difficult to be found. Only Hungary, instead of lifting its ban on imports of Ukrainian grain, expanded it from 4 to 24 items. However, in any case, the confrontation will subside when the elections are over in a number of European countries and the political factor fades into the background."
Along with exports, land is aa important issue for the agricultural sector, and they are interconnected.
"Farmers have been working at a loss for two years now. Therefore, in January 2024, when a new stage of land reform starts, they will not be able to participate in it. The UAC constantly holds regional meetings with farmers, from whom it receives feedback on the land issue. Therefore, our proposal is to keep the limit on the purchase of agricultural land at 100 hectares in one hand for individuals and legal entities, and not to increase it to 10,000 hectares from January 1, 2024, as provided by law. The increase in the limits should be slowed down so that small and medium-sized farmers can compete with large businesses in the land market. We are engaged in a dialog with the authorities on this issue," emphasized the UAC Deputy Chairman.
Monday, 18 September 2023