Poland discusses introduction of import licences with Kyiv

Poland is conducting negotiations with Kyiv to introduce import licences, which could be a solution for Polish farmers who fear excessive imports from Ukraine.

Source: Polish radio station RMF FM; European Pravda

Details: Poland is negotiating with Ukraine on the introduction of import licences that would limit the import of not only grain, but also fruit, vegetables, poultry, eggs and sugar from Ukraine. The European Commission proposed such a solution last year, but now the Polish authorities intend to introduce a new measure, namely, verification of reliability of Ukrainian licences.

Although such a solution would not be entirely in line with the principles of the free market, Brussels is ready to agree to it, provided that the Polish-Ukrainian dispute is resolved.

So far, however, as RMF FM noted, Ukraine is in no hurry to compromise on the licence issue. Polish diplomats suspect that Kyiv may be waiting for another agreement. It is about the EU regulation on the extension of duty-free trade.

Confidence that the European Commission will not abandon duty-free imports from Ukraine will allow Kyiv to take a better position in negotiations with Warsaw.

It is reported that as soon as the licences are introduced, Poland will lift the current embargo on Ukrainian imports.

"If this situation continues, the EC will initiate a procedure for violating EU law," the EU diplomat said.

More favourable solutions are also being prepared in a regulation to be adopted by Brussels next week. As RMF FM has found out, this concerns a new provision to strengthen the safeguard clause. Until now, the emergency brake on excessive imports from Ukraine could only be activated if problems arose across the EU market. On the contrary, the new proposal provides for its activation even in the event of regional disruptions.

In such a situation, in two weeks' time, the EC could impose temporary trade restrictions on Ukraine for a period of four months. Only then would the EC conduct an in-depth analysis.

The emergency brake would mean that restrictions (e.g. quotas) could be imposed in case of, for example, excessive sugar imports from Ukraine.

Background:

• It was reported that the ministers of agriculture of Bulgaria, Poland, Romania, Slovakia and Hungary demanded the imposition of import duties on Ukrainian grain due to alleged unfair competition in a joint letter to the European Commission.
• In September 2023, Poland, Slovakia and Hungary announced restrictions on imports of Ukrainian grain after the European Commission decided not to extend the ban on imports to five EU countries neighbouring Ukraine.
• In response, Ukraine filed a complaint with the World Trade Organisation against these three countries, and other EU members condemned their unilateral restrictions.

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