arm wrestling over cereal imports, which are destabilizing agriculture in Europe

In solidarity with kyiv, the European Union has opened its agricultural market to Ukrainian products. An agreement that creates tensions.

It all starts with a good intention: frank and massive support from the European Union to Ukraine. As early as May 2022, a few weeks after the start of the war, Europe lifted customs duties on Ukrainian agricultural products. Except that this measure has generated massive imports within the Union: cereals, poultry, Ukrainian eggs.

Very concrete consequence: agricultural markets have been destabilized. Saturated silos in Eastern Europe and falling prices. In response, in mid-April, Poland and four other European countries around Ukraine (Hungary, Slovakia, Bulgaria, Romania) blocked grain imports. A unilateral decision, without consultation, which created a lot of excitement in Europe.

“Solidarity does not mean naivety”, says Paris

After several months of negotiations, the Swedish presidency of the EU has finally tried to spare everyone a little. With local derogations and 100 million euros in aid to farmers in these five countries. But it still stuck.

On the one hand, Hungary refused to sign this agreement, considering that it did not have sufficient guarantees to protect its market. On the other, France has written a letter, signed by fifteen other countries, in which it reiterates its call for solidarity but demands that there are no local restrictions. Behind this letter, should we see a French concern for our agricultural production? Officially no. France is an exporter and does not particularly need Ukrainian cereals. But in Paris, the Ministry of Agriculture remains vigilant. Notably because the European Commissioner for Agriculture, the Pole Janusz Wojciechowski, is pushing to extend the restrictions. And this, despite the resistance in Europe and the anger of kyiv which speaks of “restrictions which play in favor of Putin”.

Tensions with Eastern countries

In reality, as often in European negotiations, national interests weigh heavily and compromises are not always quick. For now, the European Commission, guarantor of EU trade policy, lets the market do its thing and prefers to compensate for losses. Several MEPs contacted by franceinfo denounce this strategy. Since the conflict is getting bogged down, many are calling for more structural, more lasting responses. Negotiations continue.

The fear, on the French side, is that the tensions on cereals in the East are replayed on poultry at home. The entourage of the Minister of Agriculture, Marc Fesneau, affirms it: “Solidarity does not mean naivety”when a minister at the Quai d’Orsay explains: “Our generosity should not jeopardize our interests.” We are probably only at the very beginning of the soap opera of Ukrainian agricultural imports.


source site-29