Ukraine ‘not fully satisfied’ with new EU grain deal but can make it work, says agriculture minister
Ukraine is “not totally happy” with the newest grain deal agreed by EU international locations however could make it work, says the nation’s agriculture minister.
In a compromise reached on Wednesday night, member states agreed to harden the free-trade regime with Ukraine by increasing the record of “delicate merchandise” that may be topic to tariffs, which now consists of poultry, eggs, sugar, oats, maize, groats and honey.
The deal will increase oversight over market tendencies to permit the usage of “remedial measures,” a imprecise time period that opens the door for bans on a nationwide degree.
Altogether, it’s estimated the tweaks will make Kyiv lose a further €86 million on prime of the €240 million foreseen underneath the unique proposal.
However for Mykola Solskyi, Ukraine’s minister of agrarian coverage and meals, the information shouldn’t be as unhealthy because the headlines would possibly counsel.
“It is a compromise between many international locations, together with my nation, Ukraine. All of us perceive it is a distinctive scenario due to the battle we have now for the time being,” Solskyi advised Euronews in an interview.
“Truthfully, after all, we’re not totally happy. We wish another circumstances for the continuation of this settlement. However on the similar time, we need to say ‘thanks’ for these alternatives to commerce once more,” he added.
“We perceive that whenever you talk about a compromise, no one will be totally happy. So it is kind of potential to proceed commerce in such a troublesome scenario.”
Solskyi agreed with the projection of €330 million in financial losses for the nation however famous it was “troublesome” to calculate a exact quantity as a result of ever-changing trajectory of Russia’s aggression, which may additional hinder the nation’s means to commerce.
“We’re in a battle scenario now. No person is aware of what can occur tomorrow,” he mentioned.
For the previous yr, the EU has been immersed in a fraught debate about Ukrainian agricultural merchandise, which the bloc exempted from tariffs and quotas to prop up the war-torn nation’s economic system. The particular regime has been met with fierce contestation from farmers in Poland, Hungary, Slovakia, Romania and Bulgaria, who say the products characterize unfair competitors, depress costs and take up an excessive amount of storage.
At present, Poland, Hungary and Slovakia have unilateral bans in place to limit the circulate of Ukrainian grain, regardless of repeated pleas from Brussels and Kyiv.
“The agriculture sector has at all times been and can at all times be very delicate in most international locations in Europe,” the minister mentioned.
‘No time for feelings’
Diplomatic makes an attempt to resolve the yearlong dispute have to date yielded combined outcomes.
Poland, underneath the brand new authorities of Donald Tusk, a politician who has declared himself an avowed pro-European, has maintained the prohibitions to include the ire of farmers and truckers, who’ve staged blockades alongside the border.
Warsaw has proven a willingness to realize an enduring resolution with Kyiv and the 2 sides held a high-level assembly on Thursday, which Solskyi described as “severe and sincere,” though no breakthrough was introduced.
Polish officers have proposed a licensing system to manage agricultural flows and advised transit of Ukrainian wheat and maize may stop as of 1 April. Such a transfer can be painful for Kyiv as Poland is the principle route in direction of Western Europe.
“Our opinion is that it is not possible to forbid” transit, mentioned Solskyi. “We perceive that there are numerous feelings round these questions however it’s not time for feelings.”
Whereas the backlash on Ukrainian foodstuffs has been concentrated in Japanese Europe, the latest weeks have proven a shift in France’s pondering, a rustic that final yr joined a letter denouncing the Polish, Hungarian and Slovak bans. Now, Paris warns disruption within the markets dangers eroding public help for Ukraine and stronger motion is required.
Within the newest negotiations on free commerce, France joined Poland to push for one key modification: the computerized safeguard to use tariffs on “delicate merchandise” in the event that they exceed the common ranges of 2022-2023 needed to be prolonged to 2021.
By including a pre-war yr to the equation, the coalition wished to scale back the edge and make it simpler to slap again duties. France and Poland additionally demanded an extended record of “delicate merchandise” to cowl wheat, a extensively bought commodity.
“We perceive the French authorities, like different governments which are underneath strain from farmers,” Solskyi mentioned. “France may be very agrarian. They’ve numerous farmers there. They’ve numerous curiosity on this space. That is why they’re very delicate with the poultry and eggs discussions.”
The compromise reached on Wednesday excluded wheat however extended the reference interval to the second semester of 2021, a half-win for the pro-restrictions camp.
“I do not assume it’s going to occur very quickly,” the minister mentioned concerning the probability of tariffs. “In fact, it isn’t what we wish. However we have now far more capability.”
All through his interview, Solskyi appeared assured the long-lasting agricultural tensions can be contained in 2024 as Ukrainian firms progressively return to their “conventional” markets in Asia and Africa and subsequently scale back commerce with European purchasers.
“Now we have a battle and all the pieces can change. That is why all people desires to be very cautious with EU guidelines. However, in my view, there may be a lot much less danger,” he mentioned.
Requested if European solidarity with Ukraine will lower or enhance within the coming months, Solskyi mentioned: “I hope that it is not less than the identical.”