BRUSSELS: Ukraine has lodged a complaint with the World Trade Organization (WTO) after Hungary, Poland, and Slovakia imposed import bans on Ukrainian food products, raising concerns and exposing divisions within the European Union (EU) as its members strive to support Ukraine in the aftermath of Russia’s 2022 invasion.
Hungary, Poland, and Slovakia banned the import of Ukrainian grain and other food items, citing concerns that these shipments were undercutting their domestic agricultural sectors.
Ukraine’s Economy Minister, Yulia Svyrydenko, emphasized the significance of proving that individual EU member states cannot unilaterally ban Ukrainian imports, leading to the decision to file lawsuits with the WTO.
Trade expert David Kleimann of the Bruegel research group in Brussels explained that the WTO process begins with 60 days of consultations, providing an opportunity for the parties to seek a mutually agreeable solution. Given ongoing political developments in Slovakia and Poland, a resolution during this period remains possible.
Ukraine’s President Volodymyr Zelenskyy underscored the importance of European states reopening their export routes to support Ukraine during these challenging times.
Russia’s invasion last year had disrupted many of Ukraine’s export routes, and Moscow’s withdrawal from the Black Sea Grain Initiative had global repercussions on food prices. The EU offered alternative land routes through member states bordering Ukraine, referred to as “solidarity lanes,” to facilitate Ukrainian food exports to global markets.
Olia Tayeb Charif, head of research at the Farm Foundation, explained that some Ukrainian food products entered European markets, especially wheat, which is competitively priced. This influx posed an unprecedented challenge to the European Union, as these products were not initially intended for European markets.
Protests by farmers in neighboring European states ensued, claiming that Ukrainian food was being dumped in local markets, affecting their livelihoods.
In May, the EU provided compensation to farmers and allowed five eastern European states to impose temporary import bans on select Ukrainian products. However, as the market distortion eased, the EU decided not to renew these measures when the deadline expired on September 15.
The EU’s stance has garnered criticism from its European allies, emphasizing the need to support Ukraine in its export efforts and maintain “solidarity lanes.”
The European Commission has called on Ukraine to implement “voluntary export restraints” as it attempts to persuade eastern European member states to lift the import bans. However, this approach has been met with skepticism, with analysts noting that it may not provide a sustainable solution to the issue.
The dispute highlights the EU’s challenging balancing act between preserving its internal cohesion and supporting Ukraine, given that historically, Ukraine’s major export destinations include Africa and the Middle East, which are also significant customers of the European Union.
This trade conflict exposes divisions within the EU, particularly as it endeavors to demonstrate unity following Russia’s invasion of Ukraine in February 2022, further complicating matters in an already complex geopolitical landscape.
