Well, when Poland and Hungary start banning things, it’s usually not a good sign. And this time, Slovakia is in on the action too! So, what’s the big deal? Apparently, these Eastern European countries are putting a stop to agricultural imports from Ukraine until June 30th. Woah there, cowboys! What’s the reason for this sudden embargo, you may ask? And why are they defying the EU?
To help Ukraine out, the EU lifted some tariffs on their exports, including agriculture products, and even arranged some fancy transit corridors through Bulgaria, Poland, and Romania. However, when Russia agreed to let some Ukrainian produce pass through the Black Sea, the flow of transport on land increased. Last year, there was 27 times more Ukrainian grain shipped through Poland than this year. But, thanks to a shortage of trains and lorries, much of it stayed in local markets. Unfortunately, the plummeting prices hurt local farmers’ incomes, leading to weeks of street protests.
So, five friendly European countries (Bulgaria, Hungary, Poland, Romania, and Slovakia) got together to write a letter asking the European Commission to slow down the grain flow from Ukraine. But, as it turns out, no one was really listening. The EU planned to extend the duty-free imports until 2024, and that was all she wrote. But, then Poland decided to take matters into their own hands by banning dozens of products such as grain, milk, honey, fruits, vegetables, and some meats. Robert Telus, the agriculture minister, claimed it was necessary to “open the eyes of the EU”. Hmm, sounds like a rather bold statement. Perhaps the real reason is political, since Poland’s ruling party depends on farmer votes and they have an election coming up. Mr. Telus’s predecessor even quit recently to appease the farmers. And, to top it off, the party plans to buy up all the local grain to pump up the price.
Now, this little embargo has put our darling friends – Hungary, Poland, and Slovakia – at odds with the EU. Apparently, they’re not too pleased with these unilateral actions because trade policies are “their” thing. The Commission spokeswoman even declared this to be “unacceptable.” But, guess what? They’ve threatened nothing. Nada. The “rebellious” states show no signs of backing down, either. Hungary’s agriculture minister, Sandor Farkas, went as far as threatening to extend the ban beyond June if the EU doesn’t help protect their farmers. Boy, the EU is going to need to grab some popcorn to watch what comes next. Bulgaria could very well be next to jump on the bandwagon, since their agriculture minister, Yavor Gechev, thinks they’re turning into warehouses instead of corridors. So, he plans to ban imports as well. Gee, thanks for letting us know!
Serious News: economist