Ukraine warns EU of trade retaliation amid stalled talks
Ukrainian Deputy Minister of Economy Taras Kachka warns the European Union about the potential consequences of improperly organised trade relations with Kyiv. If progress is not made, retaliation should be expected.
Ukrainian Deputy Minister of Economy, Taras Kachka, expressed dissatisfaction with the slow pace of discussions regarding extending Ukraine's duty-free access to the EU market. According to "Politico", Kachka suggested that Ukraine is ready for retaliation if some countries, including Poland, Slovakia, and Hungary, continue to block negotiations.
Ukraine ready for retaliatory actions
Kachka emphasised that the lack of progress in the discussions could force Ukraine to take steps to balance the trade relationship.
- These decisions will be the least pleasant for the countries that are currently politically delaying the free trade negotiations - Kachka said during a public appearance.
According to Politico, Ukraine imports more from the EU than it exports, resulting in a trade surplus in favour of the Union. The Deputy Minister noted that any trade dispute could harm European businesses more than Ukraine, as European exporters sell more goods to Ukraine than imports from it.
Controversial statements by Kachka
Taras Kachka had previously threatened Poland with a lawsuit against the World Trade Organization for imposing an embargo on Ukrainian grain. Jacek Zarzecki from the Polish Sustainable Beef Platform commented that Kachka "confused courage with weights". The Deputy Minister also suggested that aggressive actions might be taken against Polish carriers.
"Politico" highlights that the EU is the largest recipient of agri-food products from Ukraine, further complicating the situation. These products are worth about €12.30 billion, with a surplus of €8.70 billion in favour of Ukraine. Kachka emphasises that Europe benefits more from trade with Ukraine than vice versa.
