Early in the war, the European Commission decided that there would be no import tariffs on grain from Ukraine, in order to help the Ukrainian economy. But farmers in the European Union are suffering. “Ukraine can produce wheat cheaply and with far fewer regulations,” says Hahn.
The fact that it is banging on all sides with the export of grain from Ukraine is Russia’s fault, says European journalist Geert Jan Hahn. “Why Russia started the war.” At the same time, the temporary solutions are also being opposed by Russia blocking ships in the Black Sea. “In doing so, they violate the agreements that have been made.” And things are also going badly on the European continent, says Hahn.
Boycott
According to Poland and Hungary, cheap grain from Ukraine disrupts the market. The countries then announced a boycott. “Instead of passing the grain, which was the intention, the cheap grain stays in these countries. This affects local prices.’
For weeks there have been protests by farmers in Poland, Slovakia, Hungary, Bulgaria and Romania. ‘However, since the beginning of the war, these countries have been compensated for lost revenues and market disruptions. Looks like they forgot it there. You can discuss the amount of compensation, but the compensation is there and continues.’
According to Hahn, it is not only the European Commission that has underestimated the situation. Protesting countries should also accept compensation. “They don’t explain why grain transit doesn’t work. Does it have logistical reasons? Or are there problems on the border with Ukraine? Countries mainly complain and thereby undermine the EU’s authority to take certain trade measures.’
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Clauses
On the other hand, the European Commission should respond to the situation. “There is clearly a problem. And Brussels knows how to integrate the clauses,’ says Hahn. “If these five countries complain, the rest of the EU should help solve the problem.”