Brussels Troubled As Cheap Ukrainian Grain Distorts EU Market | OilPrice.com

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Brussels was shocked when, on April 15, Poland and Hungary announced they would block all food products coming from Ukraine until the end of June. The measure was a direct response to the drop in prices on local markets.

- Apr 24, 2023, 12:00 PM CDT

The unilateral moves by Poland and Hungary cause a real dilemma for Brussels as trade policy is an exclusive EU competence, meaning member states legally cannot act alone. At first there were rumors Brussels would take measures against Budapest and Warsaw, either via fines or dragging them to court, but now there seems to be an understanding that farmers in countries neighboring Ukraine really are suffering.

European Commission officials met with the trade ministers of Bulgaria, Hungary, Poland, Romania, and Slovakia, as well as their Ukrainian counterpart, in Brussels on April 19 with the hope of finding a common agreement. The EU proposed the introduction of safeguarding measures that could be taken immediately and would last until June 30 on four Ukrainian products: wheat, maize, rapeseed, and sunflower seeds.

When it comes to trade measures -- such as a temporary tariff-free regime with Ukraine -- you don't need unanimity for an extension. Instead, the issue can be settled by qualified majority voting , meaning 55 percent of member states representing 65 percent of the total EU population have to vote in favor. The Swedes, who are currently chairing the rotating EU presidency, are confident of securing the required QMV but would prefer to reach a consensus on such a political hot potato.

 

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