A deal has been reached with the EU on Ukrainian agricultural exports into the CEE

HUNGARY - In Brief 03 May 2023 by Istvan Racz
A few weeks ago, Hungary, following Poland and followed a bit later on by Slovakia, unilaterally banned the imports of Ukrainian agricultural goods, claiming that the removal of quantitative quotas and tariffs by the EU after the start of the war had resulted in heavily increased quantities of imports of cheap wheat, maize, oilseeds, poultry, eggs, honey, etc. from Ukraine, with disastrous consequences on domestic agricultural producers. The aim of this ban was to force the EU to seriously deal with the issue, following months of alleged inaction by Brussels. Poland also temporarily banned the transit of Ukrainian agricultural goods through its territory. The EU Commission then said that these steps were unacceptable, on the grounds that the EU has a common agricultural policy (the CAP), and so member states should have turned to the EU Commission and settle the issue by negotiations, rather than taking unilateral measures. From Hungary's perspective, the situation threatened with the development of just another bad conflict with the EU Commission, with potential political consequences. However, a few days ago, a deal was struck between the EU Commission on one hand, and the group of Poland, Hungary, Slovakia, Bulgaria and Romania, on the other hand. According to this, Ukrainian transit shipments will continue, so that these countries will have the right to apply strict control to secure that none of these shipments are sold for domestic use in their territories. In addition, these countries will have the right to ban the imports of wheat, maize, rapeseed, and sunflower seed, but nothing else. The Commission also promised to seek new ways to find compensation for local...

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