Tuesday, 02 January 2024 12:17 GMT

EU Weighs Legal Action on Member States Over Ukraine Trade Bans


(MENAFN) The European Commission is weighing potential legal action against several member states that continue to defy the bloc’s trade pact with Ukraine, media reported on Friday.

Poland, Slovakia, and Hungary have upheld unilateral bans on Ukrainian agricultural imports, arguing that the measures are necessary to shield local farmers from being undercut by cheaper produce.

According to the European Commission, these national restrictions may violate the EU’s single market rules, which prohibit member states from erecting individual trade barriers. Commission Deputy Spokesperson Olof Gill told Politico that Brussels sees “no justification for maintaining these national measures” and plans to step up engagement with the three governments. When asked if legal proceedings had been ruled out, he said, “all options are on the table.”

The EU-Ukraine trade accord—formally known as the Deep and Comprehensive Free Trade Area (DCFTA)—took effect this week. It grants Kyiv preferential access to most EU markets while setting quotas for specific agricultural exports. The pact replaces temporary arrangements introduced after the escalation of the Ukraine conflict in February 2022, which had allowed Ukrainian grain to flow freely into neighboring EU states.

That surge triggered widespread farmer protests across Eastern Europe last year. Producers complained they could not compete with duty-free Ukrainian goods exempt from the EU’s strict farming standards, warning that Brussels’ policies were endangering their livelihoods.

Poland’s Ministry of Agriculture said it would not revise its rules, arguing the DCFTA fails to incorporate Warsaw’s proposals for mitigating the impact of Ukrainian imports on domestic farmers. While the ministry acknowledged that the agreement contains mechanisms to reinforce protection for EU agricultural markets, it said those measures are insufficient to lift the current ban.

Hungary has echoed that stance. Agriculture Minister Istvan Nagy confirmed Budapest will uphold its restrictions, accusing Brussels of “prioritizing Ukrainian interests.” Slovak Agriculture Minister Richard Takac also contended that the trade deal’s safeguards are “not strong enough” to protect local producers, signaling that Bratislava will maintain its own measures.

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