Russian lawmakers ask Prime Minister Mikhail Fradkov last Friday to support Russian meat producers and raise customs duties on above-quota beef imports from 30 to 40 percent.
Photo: Dmitry Azarov
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Duma Presses for Higher Customs Duties on Meat Imports
The Russian Duma asked Prime Minister Mikhail Fradkov last Friday to support Russian meat producers and increase customs duties on above-quota beef imports from 30 to 40 percent. The hike could raise prices on imported beef by some 5 percent, according to early estimates.
Russian lawmakers have sent an appeal to the prime minister, saying that a hike in import customs duties could be the most effective way to protect Russian meat producers. Customs duties on beef imports are currently 15 percent, but less than €0.2 for 1 kilogram. Customs on beef imports above quota is twice as much, but less than €0.3 per 1 kilo. The Duma presses to increase the latter duty to 40 percent, an issue to be discussed at the Economic Development and Trade Ministry in mid-June.
All import quotas on poultry (1.09 million tons), beef (435,000 tons) and pork (450,000 tons) are allocated for major importers. The United States has the biggest share in the quota for poultry imports, 74 percent, the EU has 18 percent and other countries – 6 percent. The European Union, however, has the biggest share in beef and pork imports.
In 2006, importers brought more than 600,000 tons of beef. The figure is likely to double this year, according to those in the market. The National Meat Associations says that as little as 12 percent of the total beef imports was delivered to Russia within the quota in the first three months of the year. “All beef imports now excess the quota,” says Sergey Yushin, head of the Nation anal Meat Association. The number of importers has nearly tripled as a result. Other analysts suggest the government review the quota allocation for countries, instead of raising customs duties.
Importers say that the decision to raise the duties may increases prices on beef by an average 5 percent. The measure, however, will clean the market from importers without steady sale channels who often sell the meat at dumping prices, Russian meat producers hope.
www.kommersant.com
All the Article in Russian as of May 28, 2007
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