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Ukraine faces conflict with EU in case of ban on sunflower seeds export

Source : 112 Ukraine

Due to the growth of prices for sunflower seeds, the government plans to introduce for their export until September; however, this decision contradicts the Association Agreement with the EU
14:49, 29 April 2021

pikabu.ru

Ukraine can face a trade conflict with the EU if the government introduces a temporary ban for the export of sunflower seeds as the European Truth reported.

“The growth of prices for sunflower oil is the consequence of the significant growth of prices for seeds of the sunflower which makes 85% of the price of oil production…As a result of the climate peculiarities of growing of sunflower, the presence of raw materials at the processing oil enterprises made only 36.9% from the volume of the previous marketing period at the beginning of the marketing period (September 2020) and internal procurement prices grew by 30% only during two weeks of September 2020,” the explanatory note of the Economy Ministry states.

Related: Ukraine gains opportunity to export seeds to EU, - official

The Cabinet of Ministers sees the solution of the problem in the ban of export of unprocessed raw material that is highly demanded abroad.

Particularly, the draft regulation offers to completely ban the export of sunflower seeds from May 15 till September 30, 2021.

However, due to such measures, the relations of Ukraine and the EU can deteriorate as the introduction of such a ban violates Article 35 of the Ukraine-EU Association Agreement that obliges the sides to restrain from the creation of restrictions in the bilateral trade.

“Association Agreement directly bans introduction of bans for export. Of course, there are exceptions - environmental issues and issues of safety of life and health of the citizens; however, it is not the case, despite the fact that the government refers to “coronavirus law”,” said Olena Omelchenko, the Head of the International Trade Practice of Ilyashev and Partners.

Related: Why Ukraine cedes ground in arms exports?

The restrictive measure will be introduced at least for four and a half months. It is unknown how Brussels will react to such a step.

As we reported, President Volodymyr Zelensky said that Ukraine will take part in the IDEX 2021 international defense technology exhibition in Abu Dhabi and Gulfood 2021 international food exhibition in Dubai. This was discussed in an interview to the Emirates News Agency WAM.

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