The prohibitions on the supply of Ukrainian agricultural goods to Poland, Slovakia and Hungary are political in nature. This was stated by Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council, at a briefing at Ukrinform.

Although the three EU countries justify the embargo on the supply of Ukrainian agricultural goods by falling prices in the domestic market, and thus protecting their own producers, this is not true.

"According to the calculations of the Kyiv School of Economics, based on Eurostat data, the difference between prices in Poland and other countries remained at the level before the full-scale invasion. After February 24, 2022, global prices for agricultural products rose sharply. This was due to sanctions against Russia and the aggressor's blockade of Ukrainian sea export routes. After the "solidarity routes" were established, the "grain corridor" started operating, and exports through ports on the Danube began to intensify, prices began to fall. But they did not return to pre-war levels. It turns out that there are no economic prerequisites for prohibition of imports of Ukrainian agricultural products. There has been no reduction in the price of products in these countries," said Denys Marchuk.

One can also hear statements about the allegedly low quality of Ukrainian agricultural products.

"Today, some Western politicians are trying to impose the idea that Ukrainian agricultural exports do not meet all quality standards, including those of the European Union. These statements are also used to justify the embargo. However, they can damage our reputation as an exporter. The argument is that 22 countries of the Eurozone strongly opposed the extension of the prohibition on imports of Ukrainian grain, which is used for the production of pasta and bread, as well as for feed production," said Denys Marchuk, Deputy Chairman of the UAC.

According to him, with such statements, the governments of neighboring countries in the West are trying to get additional support in rural areas for the fall elections.

"To resolve the situation, representatives of the Ukrainian government met almost weekly with representatives of the European Commission and 5 countries that have imposed an embargo on the supply of Ukrainian agricultural goods. The prohibition came into effect in April 2023. On May 5, the restrictions were upheld at the European Commission level. On September 15, this decision expired without the right to extend it if Ukraine offered a way out of the situation. This was done: we proposed an actual quota for the supply of agricultural products to the EU. However, Poland and Hungary decided to extend the prohibition on their own," emphasized Denys Marchuk.

He also called Poland's reaction to Ukraine's WTO claim exaggerated.

"This is a civilized way to resolve disputes in trade relations. In fact, it is another platform for negotiations. The political demarche of these three countries that we are witnessing is beneficial for only one country - the aggressor Russia," added Denys Marchuk.

Currently, the main thing for Ukraine is to maintain transit through the territories of neighboring countries, as the vast majority of agricultural products are sent to ports in third countries.

Thursday, 21 September 2023

 

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