EU countries ready to consider Ukraine's proposals on grain export regulations changes

The three member countries of the European Union which have introduced unilateral bans on the export of Ukrainian agricultural products are ready to consider the mechanism proposed by Ukraine for the joint verification and coordination of supplies.

Source: Taras Kachka, Deputy Economy Minister and Trade Representative of Ukraine; report from the press service of the Ministry of Economy

Quote: "On Monday, we presented our plan for controlling agricultural exports to all neighbouring states. We have had a very good response from Romania and Bulgaria, which reacted quite positively, and did not introduce any unilateral bans. The other three countries, including Poland, are also already giving positive signals about their readiness to consider the mechanism proposed by Ukraine," Kachka said.

He added that Ukraine has in fact proposed to introduce a mechanism for joint verification and coordination of the supply of four types of agricultural goods (wheat, maize, rapeseed and sunflower seeds) to five EU countries.

"This will not solve the problem completely, because it will actually indicate that the trade between Ukraine and these five EU countries will be conducted manually. But this will be a step forward and a rejection of bans that are unacceptable for us," added Kachka.

The trade representative also said that Ukraine may reach a certain compromise by the end of the week.

Background:

• On 15 September, the EU allowed the ban on exports of wheat, barley, rapeseed and sunflower seeds from Ukraine to Poland, Hungary, Slovakia, Romania and Bulgaria, which was introduced on 2 May, to be lifted.  
• This was done after Ukraine promised to take measures to tighten control over exports to neighbouring countries.
• On the same day, Poland, Hungary and Slovakia imposed unilateral bans on imports of Ukrainian agricultural goods. In addition to wheat, rapeseed, sunflower and maize, Poland banned the import of cereals and flour to the country, and Hungary expanded the list to 25 products.
• The governments in Budapest and Warsaw said they were acting to protect their farmers from an influx of Ukrainian products, which led to lower prices for local products.
• On 18 September, Ukraine demanded that World Trade Organisation (WTO) consultations be held with Slovakia, Poland and Hungary, which have banned imports of Ukrainian agricultural products.

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