Source: Kyiv Independent
Ukraine and Slovakia have agreed to create a licensing system for their grain trade, which could lift Slovakia’s import ban on certain Ukrainian products, the Slovak Agriculture Ministry told Reuters on Sept. 21.
Until the system is set up and tested, Slovakia’s embargo on Ukrainian wheat, maize, rapeseed, and sunflower seed will remain in place, the ministry said in a statement. The ban was approved until the end of the year.
According to the ministry, Ukraine also agreed to drop the lawsuit against Slovakia at the World Trade Organization. However, Kyiv hasn’t officially announced this decision.
Ukraine’s Trade Representative Taras Kachka said on Sept. 18 that Kyiv would sue Slovakia, Poland, and Hungary over their refusal to lift the import ban on four said categories of Ukrainian products despite the EU’s decision to end the four-month embargo.
The report comes a day after Ukrainian Agriculture Minister Mykola Solskyi and his Slovak counterpart Jozef Bíreš held an online meeting on Ukraine’s action plan for exporting Ukrainian agricultural products proposed to the European Commission.
Commenting on the meeting, Ukraine’s Agricultural Ministry said that Bratislava deemed Kyiv’s proposal acceptable, adding that the two sides agreed to coordinate the situation and maintain constructive relations between the countries. The report didn’t mention the fate of Ukraine’s WTO complaint against Slovakia.
Solskyi also discussed the action plan with his Polish and Hungarian counterparts, but no decisions have been agreed.
The EU instituted the import ban on select agricultural products from Ukraine in May at the request of Poland, Hungary, Slovakia, Romania, and Bulgaria, who feared that the influx of cheaper Ukrainian products would put pressure on their farmers. The measure was still permitting the transit of these products through the five countries for exports elsewhere.
Following the expiration of the measure on Sept. 15, Poland, Slovakia, and Hungary continuedrestrictions on the national level, while Romania prolonged the ban for 30 days until it could clear out precise licensing rules on grain imports.
Seeking to lift the restrictions, Ukraine proposed to the EU that it would implement a system of permits to manage grain export.
If we can do this with Slovakia, why can’t we agree with our good friend Poland?
It appears that it is in process of being worked out. If grain could be priced closer to domestic market local farmers wouldn’t feel as threatened. Extra funds could be used to repair Ukrainian farms and replace lost equipment, as well as bolster investment in Ukraine’s domestic arms manufacturing industry. Grain that is marked for “pass through” could still be shipped at the lower asking price.