Hungary's government announced new restrictions on the import of Ukrainian agricultural products in an effort to protect Hungarian farmers from market fluctuations caused by cheaper Ukrainian imports. The decision comes in response to a 2022 European Union ruling allowing duty-free imports from Ukraine to support its economy following Russia's invasion.
Agricultural Minister István Nagy expressed concerns over the oversupply and low prices in the European agricultural market due to the influx of Ukrainian products. He criticized the EU for failing to safeguard European farmers against the competitive pricing of Ukrainian imports and stated that Hungary would implement additional protective measures within its national jurisdiction.
Nagy accused Brussels and the European Commission of favoring Ukrainian oligarchs over Hungarian farmers, highlighting the government's discontent with the EU's handling of the situation.
Hungary's strained relationship with Ukraine has been evident, with the country offering minimal support to Kyiv during the conflict with Russia. Hungary's decision not to provide weapons to Ukraine or allow their transfer across its border, along with its resistance to sanctions on Moscow, has further exacerbated tensions.
The Hungarian government outlined a five-point plan to support local farmers, including mandatory reporting by sellers and logistics companies on restricted products imported via Ukraine, irrespective of their origin. Processed goods made from Ukrainian grain will also be subject to the new restrictions.
Last year, Hungary imposed a ban on 24 Ukrainian agricultural products, such as grains, oil seeds, flour, cooking oil, and certain meat items, with the exception of natural honey, which was removed from the list recently.
Despite the EU's agreement to extend the temporary suspension of import duties and quotas on Ukrainian agricultural exports, a reinforced safeguard has been introduced. This measure will require the European Commission to reintroduce tariff-rate quotas if the import volumes of key staples exceed the average levels imported in 2022 and 2023.
