Ukraine WTO case challenges Poland Hungary Slovakia grain export bans, impacts on European trade and Ukrainian agriculture

Ukraine Challenges EU Nations Over Agricultural Exports

^{Credit: Google | Volodymyr Zelenskyy}

Ukraine has embarked on a legal battle against its European Union neighbors—Poland, Hungary, and Slovakia—over their unilateral bans on grain exports, citing these actions as a violation of international obligations. The move comes in response to restrictions that have placed significant strains on Ukrainian traders, leading to additional transport costs and complications in fulfilling foreign contracts.

Yulia Svyrydenko, Ukraine’s first deputy prime minister, emphasized the importance of challenging these import bans, asserting that individual EU member states cannot unilaterally prohibit the import of Ukrainian goods. While Ukraine has opted for legal recourse, they remain hopeful that the countries in question will lift their restrictions, avoiding a protracted legal battle and preserving solidarity among European nations.

This legal action is a direct response to Poland, Hungary, and Slovakia’s bans on Ukrainian agricultural products, which have taken a toll on Ukraine’s vital export commodities. These restrictions, initially imposed by the European Union, permitted transit of Ukrainian wheat, maize, rapeseed, and sunflower seeds for export elsewhere while prohibiting domestic sales in certain EU member states.

Ukraine has filed lawsuits with the WTO against Hungary, Poland and Slovakia, which banned imports of Ukrainian agricultural products, the country's Economy Ministry has said.

Polish government spokesman Piotr Müller said that Ukraine's complaint did not impress Poland and would… pic.twitter.com/Tnm36htdq1
— NEXTA (@nexta_tv) September 18, 2023

In light of the European Commission’s decision not to extend the ban on imports into Ukraine’s neighboring EU nations, Poland, Slovakia, and Hungary opted to enact their own restrictions on Ukrainian grain imports. They argue that these measures serve the interests of their respective economies and protect local farmers.

Taras Kachka, Ukrainian Trade Representative, indicated that if Poland did not rescind its additional measures, Ukraine could consider imposing reciprocal measures on fruit and vegetable imports from Poland. The situation remains complex, with Polish Agriculture Minister Robert Telus extending the ban to cover cereals and related products.

The impending lawsuit against Poland, Hungary, and Slovakia has stirred tensions, with Radoslaw Fogiel, head of Poland’s parliamentary foreign affairs commission, warning that it could have adverse repercussions for Poland. He emphasized that Poland’s actions were driven by the need to protect its farmers and interests.

The European Union’s ban expired after Ukraine pledged to tighten control over exports to its neighboring countries. To address concerns, Ukraine plans to introduce a “real-time” export licensing system for grains to ensure responsible export practices.

In recent months, Ukraine has exported 1.4 million tons of farm goods by train, out of a total export volume of 4.5 million tons, highlighting the significance of rail transportation links with Poland, Slovakia, and Hungary. Additionally, Ukraine has shipped one million tons of oils and oilseeds by rail, underlining the importance of these trade relationships in the region. The legal dispute underscores the complex interplay of economic interests, international obligations, and the protection of domestic industries in the evolving landscape of European trade.