Poland has halted its purchases of wheat from Ukraine due to a spike in the cost of the commodity and an influx of cheap Ukrainian wheat into the EU market. The choice was made when Henryk Kowalczyk, the minister of agriculture, resigned as a result of farmer complaints at the rising cost of the good. Ukrainian grain will be permitted to travel via Poland to third countries up until July, according to the new decision made by Prime Minister Mateusz Morawiecki’s administration.
Polish farmers view the influx of cheap Ukrainian wheat as a danger to their home market, according to Janusz Kowalski, the deputy minister of agriculture in Poland. During President Volodymyr Zelensky’s trip to Poland on April 5, where he backed the necessity to apply tariffs on all Ukrainian agricultural products, the matter is said to have been resolved.
Poland and four other Central European nations wrote to the European Commission in March to request that steps be taken to reduce market “distortions” brought on by the inflow of Ukrainian imports. The letter recommended reintroducing tariffs and tariff-rate quotas if these efforts are unsuccessful.
The European Commission’s decision to extend duty-free imports of Ukrainian wheat until June 2024 caused Kowalczyk’s departure. There will likely be serious repercussions for both nations if wheat imports from Ukraine are suspended. Polish farmers will profit from the increased demand for their wheat while Ukrainian farmers will lose a significant market. The choice might, however, exacerbate tensions between the two nations and have wider ramifications for commercial relations between the EU and Ukraine.
Feature Photo Source: https://www.pexels.com/photo/close-up-of-wheat-326082/
17 April 2023
