The European Commission intends to extend Ukraine’s access to EU markets at the summit this week but will introduce restrictions on some key agricultural products to protect members state’s domestic markets, UBN reported on January 31.

After the start of the war, EU threw open its markets to duty free Ukrainian imports as an indirect way of funding the war-torn state.

However, things went awry last April when a flood of cheap Ukrainian grain and corn wrecked the Polish grain market, leading Warsaw to impose a unilateral ban on imports, along with several neighbouring countries. The EC later confirmed the ban and extended it for five months, but after the deadline expired on September 15, Poland unilaterally extended it and has been negotiating with Ukraine ever since on resolving the problem.

A more concrete solution to the problem is included in the latest draft trade agreement between Ukraine and the EU in the form of a set of limitations, restricting Ukrainian exports of sugar, poultry meat and eggs into the European market that will run through until June 6, 2025.

Poland will be the main beneficiary of the changes. The draft proposal introduces two protection mechanisms to safeguard against market instability: a standard provision and an "emergency brake" for extreme fluctuations. Under the new system, should there be a surge in Ukrainian grain imports, any single EU member state, including Poland, will have the authority to invoke the "safety brake." This is a shift from the current requirement of unanimous consent from all EU countries.

The process for halting excessive imports of agricultural products from Ukraine is set to become more agile. Decisions can be made expeditiously, as they will only require the endorsement of the European Commission, bypassing the need for a consensus among all EU member states.

Poland is expected to exercise the safety brake mechanism immediately the draft is adopted on Ukrainian products until its market is balanced again, as it is still suffering from a grain glut that has been holding down prices.