Slovakia imposes a ban on some Ukrainian imports in September 2023.
Context
In September 2023, the Slovakian government announced that it would impose a ban on imports of Ukrainian grain products – wheat, corn, rapeseed and sunflower seeds – until the end of 2023. The ban was then extended and expanded in November 2023, to include honey, barley, wheat flour, cane/beat sugar, and soybeans, and is ongoing. This unilateral measure was announced in response to the end of an European Commission ban on Ukrainian grain entering five member state markets bordering Ukraine. The key political context here is the Russian invasion of Ukraine in 2022 and the subsequent July 2023 failure of the so-called Black Sea grain deal that had sought safe passage for Ukrainian grain shipments to global markets. This allegedly resulted in cheap Ukrainian exports threatening the domestic grain industries of neighbouring countries, including Slovakia – though Ukraine has denied that it has had harmful effects.
impact
This measure impacted then agriculture industry, specifically grains – wheat, corn, rapeseed and sunflower seeds. According to then Slovakian agriculture minister, Richard Takáč, in 2022 “farmers in Slovakia calculated that importing Ukrainian grain caused them a loss reaching about €110 million. Meanwhile, a compensation Slovak republic was given by the European Commission was at the level of about €5 million”.
Responses
i) Ukranian government and industry responses.
Ukrainian grain farmers have not publicly responded to these measures – and are constrained from seeking alternative markets due to their country’s war with Russia.
In mid-September 2023, Ukraine filed a complaint against Slovakia with the WTO, in which, according to the WTO dispute summary, “Ukraine claimed that the measures imposed by the Slovak Republic appear to be inconsistent with: Articles V:2, X:1, and XI:1 of the GATT 1994; andvArticles 4.2 and 5 of the Agreement on Agriculture.”
Ukraine’s first deputy minister, Yulia Svyrydenko, said in a statement that “[f]or us, it is critically important to prove that individual member-states cannot ban imports of Ukrainian goods. And that is why we have filed suits through the WTO.”
(ii) Other states’ government and industry responses
Other Ukrainian neighbours impacted by the effects of Ukraine’s grain exports included Poland, Bulgaria, Hungary, and Romania. Bulgaria did not choose to impose any unilateral measures on Ukraine, prompting thanks from Ukrainian President Volodymyr Zelenskiy, who said that Bulgaria “sets an example of true solidarity”
Status
In late September 2023, a bilateral agreement was established in which, according to a Slovakian government ministry statement “(Ministers) agreed on creating a grain trade system based on issuing and controlling licences”. Consequently, Ukraine reportedly committed to halting its WTO action if the license system was successful. However, this attempt at bilateral agreement appears to have stalled. Notably, in October 2023, Slovakians elected new Prime Minister Robert Fico – viewed as more pro-Russia than his predecessor.
Relevant WTO dispute(s)
DS621: Slovak Republic — Measures Concerning Agricultural Products from Ukraine
Reference list
Al Jazeera. 2023. “Hungary, Poland, Slovakia to continue own bans on Ukraine grains.” Al Jazeera. September 15. Available at: https://www.aljazeera.com/news/2023/ 9/15/poland-hungary-to-continue-ban-on-ukrainian-grain-after-eu-lifts-embargo
Blenkinson, P. 2024. “Ukraine says its farm product exports are not damaging EU markets.” Reuters. February 15. Available at: https://www.reuters.com/markets/ commodities/ukraine-says-its-farm-product-exports-are-not-damaging-eu-markets-2024-02-14/
Court, E. 2023. “Slovakia to extend, expand ban on Ukrainian agricultural products.” The Kyiv Independent. September 3. Available at: https://kyivindependent.com/slovakia-to-extend-ukrainian-grain-ban/
Dysa, Y. 2023. “Ukraine files WTO complaints against Poland, Slovakia and Hungary over food export ban.” Reuters. September 19. Available at: https://www.reuters.com/ world/ukraine-files-wto-complaints-against-poland-slovakia-hungary-over-food-export-2023-09-18/
Lopatka, J. “Slovakia, Ukraine agree grain trade system to replace ban, Slovak ministry says.” Reuters. September 21. Available at: https://www.reuters.com/markets/ commodities/slovakia-ukraine-agree-grain-trade-system-replace-ban-slovak-ministry-2023-09-21/
Polityuk, P. and Y. Dysa. 2023. “Ukraine opposes any ‘illegal’ extension of European farm trade curbs.” Reuters. Available at: https://www.reuters.com/world/europe/ukraine-thanks-bulgaria-not-extending-food-export-restrictions-2023-09-14/
Silenská, N. 2023. “Slovakia to extend ban on Ukrainian agricultural commodities.” Euractiv. November 30. Available at: https://www.euractiv.com/section/politics/news/ slovakia-to-extend-ban-on-ukrainian-agricultural-commodities/
Sky News. 2024. “Who is Slovak populist prime minister Robert Fico?” Sky News. May 16. Available at: https://news.sky.com/story/who-is-slovak-populist-prime-minister-robert-fico-13136482
Wintour, P. 2023. “What was the Black Sea grain deal and why did it collapse?.” The Guardian. July 20. Available at: https://www.theguardian.com/world/2023/jul/20/what-was-the-black-sea-grain-deal-and-why-did-it-collapse
WTO. 2023. “Dispute settlement: DS621: Slovak Republic — Measures Concerning Agricultural Products from Ukraine” World Trade Organization. Available at:
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds621_e.htm