President of Russia Vladimir Putin (right) and Minister of Agriculture Alexey Gordeyev (left) in the presidential residence in Sochi
Photo: Dmitry Azarov
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Russia Plays Chicken with the U.S.
Russian Minister of Agriculture Alexey Gordeev met with Russian President Vladimir Putin yesterday in Sochi to discuss trade with the United States. Gordeev has suggested depriving the U.S. of its 80-percent quota on chicken imports to Russia in response to the U.S. refusal to sign off on Russia's accession to the World Trade Association.
Gordeev began his presentation by reporting on the successful course of the harvest in Russia, although he noted that, at 47 million metric tons, the grain harvest lags behind last year's by 6 million tons and that the year is expected to end with that differential still in place. Russia first began to export grain in its new history in 2001 and has managed to maintain its export at 10-15 million tons per year. That is more than in 1913.
Gordeev mentioned that the price of fuel has begun to rise again after almost a year's stability. He said that the government would have to compensate producers, and the government is ready for that.
The problem of recent years with meat and milk production has been overcome, with the living mass of herd and flocks rising 3.6 percent in the first half of the year.
“But I would link the issue of the growth of production, especially of fowl, with customs duty policy,” Gordeev said. “You know that the U.S. is the main provider of fowl. In particular, 75-80 percent of the volume of import is American meat.”
The president looked sincerely surprised by that fact.
“Yes,” Gordeev sighed. “They have about 800,000 tons,” out of 1.15 million tons. “Of course,” Gordeev noted, “serious preference was shown for our American colleagues. But we tied it to Russia's membership in the WTO, so that we could operate with equal rights with out partners, including the EU countries, where there is strong subsidization of production and export. As a result, of course, the process is being drawn out.”
Gordeev therefore suggested reconsidering the quota. Brazil is capable and willing to take a greater share in the quota. In addition, Russia has finally topped Soviet indicators for poultry production, and pork productions have kept pace.
www.kommersant.com
All the Article in Russian as of Aug. 22, 2006
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