Subsidies to Polish farmers for Ukrainian grain contradict WTO rules

UkrAgroConsult

Subsidies provided by Poland to its farmers in response to the growth of grain exports from Ukraine do not comply with the rules of the World Trade Organization (WTO). This was stated by Deputy Minister of Economy and Trade Representative of Ukraine Taras Kachka, Reuters reports.

It is noted that the Polish government has approved 10 billion zlotys ($2.4 billion) in aid to Polish agriculture to help its farmers compete with the surplus of grain from Ukraine that has allegedly accumulated in Poland.

“These subsidies go far beyond what is allowed by WTO rules,” Kachka said.

The deputy minister believes that such actions could become a source of trade problems around the world.

“We see no actual negative impact on the domestic markets of these countries and are working intensively with the EU to ensure the smooth operation of all trade routes,” Kachka said.

He added that the trade problems caused by the war “lead to assumptions, speculation and unfair trade practices, (when) in fact trade is a key factor that can stabilize markets.”

Tags: Ukraine, subsidies, grain, Poland, restrictions