Lithuania's Agricultural Committee Emphasizes Support for Ukraine and Convergence of Direct Payments

Strategic Insights -

A delegation of Lithuania's Seimas Rural Affairs Committee visited Warsaw to participate in the meeting of the agricultural committees of the parliaments of the Visegrad Group countries. The discussions centered on trade relations with Ukraine, the free trade agreement between the European Union and MERCOSUR countries, and the future of the Common Agricultural Policy (CAP) after 2027. The committee emphasized Lithuania's firm support for Ukrainian agriculture, citing it as a symbol of economic and political solidarity. However, they also expressed concerns about the potential risks and consequences of Ukraine's EU membership, including unfair competition on the EU market.

Key Takeaways:

  • Lithuania's Seimas Rural Affairs Committee supports the liberalization of trade between the EU and Ukraine, emphasizing its importance as a symbol of economic and political solidarity.
  • The committee expressed clear opposition to the current wording of the EU-MERCOSUR free trade agreement, citing economic, social, and environmental risks.
  • Ukraine's agricultural exports currently account for more than half of its exports, with a significant portion going to EU countries.
  • Ukraine's integration into the EU could strengthen the EU's food security, strategic independence, and resilience to geopolitical challenges.
  • Lithuania insists on convergence of direct payments to ensure fair competitiveness among EU farmers, with an average payment rate significantly lower than the EU average.
  • The committee welcomed the possibilities of using Ukrainian raw materials for processing and biofuel production, highlighting their potential for a more sustainable economy.
  • Lithuania invited Poland, Latvia, and Estonia to a trilateral meeting in the Lublin Triangle format in Vilnius to discuss the CAP reform after 2027.

Statistics:

  • More than half of Ukraine's agricultural exports currently go to EU countries (Source: Prof. Marek Wigier).
  • Ukraine's integration into the EU could strengthen the EU's food security by providing access to new markets and resources.
  • The EU-MERCOSUR free trade agreement poses economic, social, and environmental risks, with the European Commission lacking a transparent economic impact analysis.
  • Lithuania's farmers receive lower direct payments than the EU average, hindering their competitiveness.
  • The Lublin Triangle format meeting in Vilnius aims to discuss the CAP reform after 2027 and convergence of direct payments.

Sources:

  • Kestutis Mazeika, Chairman of the Seimas Rural Affairs Committee
  • Marek Wigier, Director of the Polish National Research Institute of Agricultural and Food Economics (exact source not provided)