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Trade Trends News
22-09-2023
Romania will work with Ukraine on a food export control program in the next 30 days to help protect Romanian farmers, Agriculture Minister Florin Barbu said Wednesday.
After Russia's invasion of Ukraine, Romania and five Eastern European Union countries - Bulgaria, Hungary, Poland and Slovakia - have seen a surge in food imports to Ukraine. That distorted local markets and sparked protests by farmers, leading the European Union to approve restrictions on Ukrainian grain imports while still allowing grain to be transshipped elsewhere until September 15th.
Poland, Slovakia and Hungary announced their own unilateral bans on Friday, prompting Ukraine to file a complaint against the three countries with the World Trade Organization.
Ukraine has proposed to the European Commission, the EU's executive body and neighboring countries export control schemes for four crops - wheat, corn, sunflower and rapeseed - to protect the local market.
On Tuesday, it approved the introduction of export licenses for some agricultural products exported to five countries in Eastern Europe.
"The export licenses for Ukrainian companies will come into force within 30 days," Romania's Balbu said. "In the meantime, Romania will also develop a clear import licensing procedure for Romanian farmers and processors."
Balbu added: "I am confident that this mechanism, proposed by the European Commission, accepted by Ukraine and negotiated by us in the interest of farmers, will be fully functional."
Ukraine is one of the world's largest grain exporters, and since Russia's invasion last year, the Romanian Black Sea port of Constanta has become Kiev's largest alternative export route, with grains arriving by road, rail, or barges across the Danube.
Barbu also said that Romania will only issue import licenses to Romanian farmers and food processors who need to replenish their stocks, not to middlemen, and that food safety checks will be carried out on all imports.
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