Weekly Briefing, Vol. 65. No. 4 (PL) September 2023
Poland, along with Hungary and Slovakia, unilaterally extend embargo on Ukrainian grain
Summary
The European Commission has not extended the embargo on Ukrainian grain imports to Poland and 4 other countries – Romania, Bulgaria, Hungary and Slovakia, which was in effect until September 15. Following the decision, Poland, along with Hungary and Slovakia, introduced a unilateral ban on Ukrainian grain imports. Poland justifies this on the grounds of the interests of Polish agriculture and the drop in prices of agricultural products associated with imports. In response to the decision, Ukraine announced it would challenge Poland, Slovakia and Hungary in World Trade Organization (WTO) arbitration. The tightening of Polish-Ukrainian trade relations is accompanied by an election campaign in Poland, in which the interests of Polish farmers play a significant role.
Introduction
The European Commission (EC) has not extended the embargo on Ukrainian grain for five countries, including Poland. It reported that Ukraine is to introduce effective export control measures for the four grains to prevent market disruptions in neighboring EU member states.[i] According to the EC, disruptions to agricultural markets in the five member states bordering Ukraine – Poland, Romania, Slovakia, Bulgaria and Hungary – have disappeared. “The European Commission and Ukraine will monitor the situation (…) to be able to respond to any unforeseen situations. The European Commission will not impose any restrictions as long as the effective measures applied by Ukraine are in place and fully effective,” the EC wrote in the communiqué.
The Polish Prime Minister: we will defend the interests of the Polish farmer
A ban on Ukrainian imports of wheat, corn, rapeseed and sunflowers to Bulgaria, Hungary, Poland, Romania and Slovakia was imposed by the European Commission in early May following an agreement with those countries on Ukrainian agri-food products. The ban was initially in effect until June 5, and was later extended until September 15. Transit of grain through the territories of the so-called frontier countries remained permitted.
In response to the European Commission’s decision not to extend the embargo on Ukrainian grain imports to the five countries bordering Ukraine, Polish authorities, like those of Hungary and Slovakia, introduced a unilateral indefinite embargo. Polish Prime Minister Mateusz Morawiecki announced that Poland will lift the embargo on grain and some agricultural products from Ukraine once a “model of cooperation with our eastern Ukrainian neighbor” is developed. As Morawiecki said, the “geopolitical upheavals” gripping Poland in recent years are well recognized by the Polish farmer. One of them, according to the prime minister, is “this big, massive crisis in the grain market. This crisis, from which we defended the Polish farmer on April 15 of this year with the embargo on Ukrainian grain.” – We will extend the ban on Ukrainian grain imports, despite the lack of approval from the European Commission. We will not listen to Berlin, von der Leyen, Tusk or Weber. This is about the interests of the Polish farmer,” Prime Minister Mateusz Morawiecki declared.[ii]
In a televised address, the Polish prime minister said the Polish government would not allow “Ukrainian grain to destabilize the Polish countryside.” He stressed that “the interests of Polish farmers, the Polish countryside, but also of millions of Polish consumers will always come first for the Law and Justice (PiS) government.”[iii] He added that “for a long time the European Union did not want to see the problem of imported grain from Ukraine”. It was our pressure that made Poland have an embargo, i.e. a ban on the import of Ukrainian grain, the head of government noted. For more than two months, our government in cooperation with the Polish commissioner for agriculture, Janusz Wojciechowski, has been doing everything to extend this embargo,” he noted.[iv]
The EU commissioner for agriculture: Poland does not lay down its arms
EU Commissioner for Agriculture – Pole – Janusz Wojciechowski announces that he is not laying down his arms regarding the EU embargo on grain from Ukraine [v]. He indicated that he has sent a letter to EC chief Ursula von der Leyen, calling for a change in the decision and the reinstatement of the ban on Ukrainian grain imports. In the document, he points to the benefits of the EU embargo. – Somehow it doesn’t get through, even though I’ve said it so many times,” Wojciechowski says, and argues that the EU ban has stabilized the market and hasn’t hurt Ukraine, which has increased its exports anyway.
Wojciechowski is in no doubt as to why the EC, although hesitant, ultimately decided to lift the restrictions. – Ukraine’s pressure decided, we can clearly see that,” says Janusz Wojciechowski, adding that the controls proposed by the EC to be introduced by Ukraine on its own would not serve their purpose, as the excessive exports were speculative. – One should not spoil what was producing good results, the commissioner points out. Janusz Wojciechowski said that after the EC’s decision not to extend the embargo, he “accepts with understanding” the unilateral embargo introduced by Poland.
The Polish agriculture minister in Brussels
We are disappointed by the European Union’s decision not to extend the embargo on grain imports to five EU countries; it looks like the Union is not thinking about building mechanisms for the future, Polish Agriculture Minister Robert Telus said in Brussels after a meeting of EU agriculture ministers in Brussels.[vi] ” He noted that the introduction of the ban on imports to Poland, Slovakia, Romania, Hungary and Bulgaria in April this year stabilized the situation, so that the volume of grain exports from Ukraine by land increased. Asked about the proposal presented by the Ukrainian side for monitoring exports, he replied: “These solutions are not certain. It is the European Union’s job to control the market. It has given its tasks to Ukraine. This is not a good solution and is not certain. We are the ones to control. (…) If the EU does not fulfill this task for which it was created – for European solidarity – then we as Poland will do it.”
Robert Telus expressed hope that Ukraine will understand that Poland’s position is rational and right. “We want Ukrainian products to go where they are needed; where they were going before the war. After all, it’s logical and normal that if there starts to be a shortage of grain in those African, Arab countries – and it’s already the second season that grain is going there in a much smaller percentage – then in a while (…) the market there will destabilize, (people) will start looking, migration will start. And isn’t that what Putin tried to do through Belarus? After all, it’s so logical. I don’t know why the bureaucrats in Brussels either don’t see this, or close their eyes so they can’t see.” – he said.
Poland’s agriculture minister confirmed, in response to Ukraine’s challenge of the Polish, Hungarian and Slovak embargoes to the WTO, that Poland will not participate in meetings of the coordination platform on Ukrainian grain, which includes representatives of the EC, border states and Ukraine. Poland’s Permanent Representative to the EU, Andrzej Sadoś, said that Poland will discuss matters concerning the future of the Common Agricultural Policy among the 27 EU countries at the Council.[vii]
Ukraine takes the floor
The Ukrainian President Volodymyr Zelenski also reacted to the European Commission’s decision to lift the ban on Ukrainian grain imports. “I thanked Ursula von der Leyen for keeping her word. This is an example of cooperation between Ukraine and the European Union in true unity and trust. When rules are respected and agreements are kept, Europe always wins,” the Ukrainian leader commented on social media. “It is very important for European solidarity to work now at the bilateral level, for our neighbors to support Ukraine during the war. If their decisions violate European Union legislation, Ukraine will respond in a civilized manner.” – Zelenski announced. According to Prime Minister Denis Shmyhal, Ukraine has requested arbitration with the World Trade Organization (WTO) over the unilateral extension of the embargo by Poland, Hungary and Slovakia.
– It is disturbing how some in Europe, some of our friends in Europe, are playing out solidarity in the political theater, making a thriller with grain, said Ukrainian President Volodymyr Zelensky on appearing in the general debate at the 78th session of the United Nations General Assembly in New York. He also said that “some people are helping to prepare the stage for the Moscow actor.”[viii] In the same time, Ukrainian government said it would like to find the compromise with Poland. The Ukrainian authorities announced that they had presented a mechanism for joint control of these four grain products to ensure the interests of Polish farmers. They claim that Poland will decide how much grain to let into its market. [ix]
The Commission does not intend to punish Poland, Germany criticizes
The EC will not penalize Poland for the time being for its unilateral embargo on grain from Ukraine and their meal. Poland’s RMF Brussels radio correspondent reported that “the EC will turn a blind eye to unilateral blockades for the time being.”[x] EC spokeswoman Miriam Garcia Ferre conveyed in a statement sent to RMF FM: “We are aware of some announcements by member states regarding unilateral measures. We need to analyze them, so we cannot comment at this stage. Our focus now is on the implementation and launch of the new system just announced.”
The decision by Poland, Hungary and Slovakia was criticized by the leaders of Germany, France and Spain, among others. German Minister of Food Policy and Agriculture Cem Ozdemir noted that the grain problem is Brussels’ biggest challenge to EU trade in decades. According to the German politician, Brussels’ decision to lift restrictions was “right,” and the bans imposed by Warsaw, Bratislava and Budapest show “incomplete solidarity with Ukraine.” You are in solidarity when it suits you. When it doesn’t suit you, you are no longer,” Ozdemir said.[xi]
Conclusion
The non-renewal of the embargo on Ukrainian grain imports to 5 countries bordering Ukraine by the European Commission and the unilateral implementation of the embargo by 3 of them is the biggest crisis in Polish-Ukrainian relations since the start of the war in Ukraine. The interests of Polish and Ukrainian agriculture, which are different, happened here. This situation shows that despite exceptionally good Polish-Ukrainian relations in the context of a common threat from Russian imperialism, the countries recognize their real economic interests, which can often be different in some areas. It is also worth noting that an election campaign is underway in Poland, and the agricultural electorate is extremely important in the electoral outcome. However, despite the strong polarization of political factions, the issue of the embargo on Ukrainian grain unites all Polish political forces. The opposition only accuses the government of being ineffective in pushing its position at the EU forum.
[i] Daily Dziennik Gazeta Prawna https://www.gazetaprawna.pl/wiadomosci/swiat/artykuly/9298120,komisja-europejska-nie-przedluzyla-embarga-na-ukrainskie-zboze-dla-pol.html
[ii] The weekly “Do Rzeczy”https://dorzeczy.pl/ekonomia/481605/polska-wprowadza-embargo-na-zboze-z-ukrainy-rozporzadzenie.html
[iii] The RMF FM radio portal https://www.rmf24.pl/raporty/raport-wojna-z-rosja/gospodarka/news-embargo-na-ukrainskie-zboze-debata-w-strasburgu-oredzie-mora,nId,7021530#crp_state=1
[iv] The economic portal Money.pl https://www.money.pl/gospodarka/morawiecki-reaguje-na-wiesci-z-brukseli-zla-decyzja-6941890207517312a.html
[v] Portal tygodnika “Do Rzeczy” https://dorzeczy.pl/ekonomia/481980/komisarz-wojciechowski-nie-skladam-broni-ws-embarga-ue.html
[vi] „New Industry” Portal https://www.wnp.pl/rynki-zagraniczne/ue-minister-telus-w-brukseli-jestesmy-rozczarowani-ze-ue-nie-mysli-o-produktach-ukrainskich-w-perspektywie-przyszlosci-aktualiza,753086.html
[vii] The agricultural portal Farmer.pl https://www.farmer.pl/fakty/polska/trzy-kraje-ue-w-tym-polska-nie-beda-uczestniczyc-w-pracach-platformy-ds-ukrainskiego-zboza,136147.html
[viii] News portal Onet.pl https://www.onet.pl/informacje/onetwiadomosci/wolodymyr-zelenski-ostro-o-decyzji-polski-przygotowuja-scene-dla-moskwy/hnlyze5,79cfc278
[ix] New portal Interia.pl https://wydarzenia.interia.pl/kraj/news-ukraina-robi-zwrot-nie-chca-embarga-na-polska-zywnosc,nId,7037156
[x] The RMF FM Radio Portal https://www.rmf24.pl/fakty/polska/news-nie-bedzie-kary-dla-polski-za-embargo-na-zboze-z-ukrainy,nId,7031224#crp_state=1
[xi] The economic portal BusinessInsider.com.pl https://businessinsider.com.pl/wiadomosci/jestescie-solidarni-kiedy-wam-to-pasuje-niemcy-krytykuja-polske-za-postawe-wobec/d0ybvc7