Kyiv retreats, decides not to litigate with Hungarian government

Ukraine is seeking another solution for the issue of restrictions on grain imports.

Kijev, 2023. augusztus 24. Volodimir Zelenszkij ukrán elnök beszédet mond a függetlenség napja alkalmából tartott ünnepségen a kijevi Szent Szófia székesegyház elõtt 2023. augusztus 24-én. Ukrajna 32 éve, 1991. augusztus 24-én vált függetlenné a Szovjetuniótól. MTI/EPA/Szerhij Dolzsenko Fotó: Szerhij Dolzsenko

Kyiv has decided to "pause" its complaint to the World Trade Organization (WTO) against Poland, Hungary and Slovakia over restrictions on Ukrainian grain imports, in a bid to find a practical, compromise solution to the problem, Deputy Minister for Economic Development Taras Kachka - who is also Ukraine's trade representative - told reporters in Brussels on Thursday.

This is generally a question of the functioning of trade between the EU and Ukraine. We expect the problem of imports of Ukrainian agricultural products to be resolved in the coming weeks and months. There will be plenty of news on how the licensing scheme will change and so on. This will be a very active work. While we are looking for a practical solution, our discussions in the WTO are on hold,

– Ukraine's trade representative was quoted by the Interfax-Ukraine news agency as saying.

Mr Kachka stressed that Ukraine is currently engaged in consultations, not a debate. "We are not in a debate, and we have not formed a working group to settle the dispute. We are in the consultation stage. We have sent this case to the WTO and we have 60 days for consultations," he explained. He underlined that it was important for the Ukrainian side to find a constructive solution for the EU as a whole. "Although our complaints relate to specific member states, including Poland, this is a systemic issue in our relations with the EU. Our aim is to underline that the EU and Ukraine share the same approach to trade agreements. We know how to resolve this problem in a comprehensive way, to demonstrate unity between us and Poland, between us and the EU, and between Poland and the EU," he said. Kyiv has already regulated the customs clearance of goods passing through five neighboring countries, he added.

The way we see, no country is prohibiting this transit. This is a great collective achievement. We have one remaining sticking point: the question of when the markets of neighboring countries can be opened to Ukrainian goods. This, however, is a minimal problem, because we do not sell many grain products there, so the general question pertains to the functioning of trade between Ukraine and the EU.

– the deputy minister explained.

BREAKING:

Ukraine suspends its complaint against Poland, Slovakia and Hungary to the WTO over the grain dispute. pic.twitter.com/69J2yBpOti

— Visegrád 24 (@visegrad24) October 5, 2023

Regarding the situation in Poland, Mr Kachka expressed hope that they could return to the negotiating table after Poland's general elections. "I do not see any systemic obstacles to solving the problem. It's only a question of time. In addition, Poland has not yet received any export license applications from Ukrainian companies, which is another indicator that there is no huge export pressure. We are using this time to show that, in reality, it is in the clear interest of Ukrainian exporters to simply export to EU countries where there is a real demand for Ukrainian goods," he said.

Mr Kachka reiterated his belief that "the market will calm down this autumn. We will all return to normal trade flows, which will allow us to restore a situation that is convenient for local farmers from neighboring EU states, as well as for Ukrainian farmers," he said, noting that the "lion's share" of Ukrainian agricultural products passes through Romania's Black Sea ports, the Baltic ports, railways and roads.

Cover photo: Ukrainian President Volodymyr Zelensky (Photo: MTI/EPA/Szerhij Dolzsenko)