How Can Ukraine Challenge EU Agro-Export Ban?
September 15 could become a crucial day for Ukraine. It is expected that the European Commission will lift its import ban on Ukrainian corn, wheat, rapeseed, and sunflower seeds to Bulgaria, Hungary, Poland, Romania, and Slovakia.
However, at least two countries, Poland and Hungary, intend to unilaterally extend the ban.
Read more a column for European Pravda by Angela Makhinova, a partner at Sayenko Kharenko law firm, Protecting Agro-Exports: What Options Does Ukraine Have for Disputes with the EU.
The European Union had temporarily liberalised trade given the full-scale war, first by approving Regulation 2022/870 and later Regulation 2023/1077.
Initially, farmers from neighbouring countries, including Poland, attempted to physically block Ukrainian imports, blocking border checkpoints, and more. However, the respective governments imposed individual import bans at the state level.
The issue was subsequently brought to the European Commission, which, banned the import of Ukrainian corn, wheat, rapeseed, and sunflower seeds to Bulgaria, Hungary, Poland, Romania, and Slovakia until September 15.
It is now clear, notes Angela Makhinova, that at least two of the five countries that initiated the ban do not plan to lift it and will continue to impose one-sided restrictions at least until the end of the year.
Moreover, there is a discussion about expanding the ban to other goods (specifically, Hungary is considering a list of 24 items).
The author suggests that Ukraine is considering a dispute against the EU based on the Association Agreement if the ban is extended.
"Import restrictions, even to five countries, are an obvious violation of the Association Agreement," says Angela Makhinova, a partner at Sayenko Kharenko law firm.
She warns that businesses should already look towards initiating legal mechanisms that would compel the EU to abandon further restrictions.
One of the potential mechanisms is initiating a dispute under either the Association Agreement, explains the lawyer.
She reminds that Ukraine already has experience in participating in disputes based on the Association Agreement (mentioning the dispute regarding timber). Consequently, the process of this dispute should move fairly quickly.
"Moreover, the import ban violates the agreements of the World Trade Organisation (WTO)," she asserts.
Furthermore, initiating a dispute by Ukraine, whether based on the Association Agreement or the WTO agreements, does not mean that we will have to go through the entire dispute to the end, emphasises Makhinova.
"The point is that such initiation can create an additional official platform for negotiations between Ukraine and the EU to find a possible solution to the problem.
As statistics from the WTO show, about 20% of disputes are resolved at the consultation stage," the lawyer notes.
Recent events indicate, warns the author, that despite the war in Ukraine, countries are not ready to completely sacrifice their own economic interests.
"So the Ukrainian government and business will have to start active offensive actions..." summarises the partner of Sayenko Kharenko law firm.