Tuesday, 02 January 2024 12:17 GMT

EU may sue member states defying trade pact with Kiev


(MENAFN) The European Commission could initiate legal proceedings against EU countries that refuse to implement the bloc’s trade agreement with Ukraine, according to reports. Poland, Slovakia, and Hungary have maintained unilateral bans on Ukrainian agricultural imports, arguing that the measures are needed to shield domestic farmers from low-cost competition.

Brussels has signaled that such restrictions could violate single market rules, which forbid member states from erecting national trade barriers. Commission Deputy Spokesperson Olof Gill told reporters that the EU sees “no justification for maintaining these national measures” and plans to intensify talks with the three governments. When asked if legal action was being considered, he said “all options are on the table.”

The EU-Ukraine deal, formally known as the Deep and Comprehensive Free Trade Area (DCFTA), came into effect this week, offering Kyiv preferential access to EU markets while imposing quotas on certain agricultural exports. The agreement replaces temporary measures introduced after the February 2022 escalation of the Ukraine conflict, which previously allowed Ukrainian grain to enter neighboring markets without restrictions.

Last year, the surge in imports prompted farmer protests in Eastern Europe. Producers argued that tariff-free Ukrainian goods, exempt from strict EU regulations, put local farmers at a severe disadvantage and threatened their livelihoods.

Poland’s Ministry of Agriculture said it will keep its restrictions, claiming that the DCFTA does not fully incorporate Warsaw’s proposed protections against Ukrainian imports. While the agreement includes some mechanisms to safeguard EU agricultural markets, the ministry argued they were insufficient to justify lifting the ban.

Hungary has taken a similar stance, with Agriculture Minister Istvan Nagy accusing Brussels of “prioritizing Ukrainian interests.” Slovakia’s Agriculture Minister Richard Takac echoed the concerns, stating that the new safeguards are “not strong enough” to protect local producers and signaling that Bratislava will maintain its import limitations.

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