March 22 2005, 12:00 APK-Inform

Agroindustrial associations contesting proposed scope of import duty decrease

Agroindustrial Associations of Ukraine initiate differentiated approach to decrease of import duty for agricultural products. They are voicing the opinion that Ukrainian food market is not ready to such a sharp import duty decrease for agricultural products, also this may lead to destabilization of national market.

Representatives of confectionary industry consider that it is possible to cut import duty only for confectionary raw materials and those kinds of products that are not produced in Ukraine.

Dairy industry representatives agree with the necessity of cutting import duty but in lower amount. They are afraid that Ukrainian product may become more expensive than European ones due to subventions in EU and this will destabilize national market.

As for import of meat and poultry, local producers and processors of these products agree with import duty cutting but they insist on import quotas application.

Now work group should be created for analyzing balances of several agricultural products and examination of propositions of Agroindustrial Associations and Ministry of Agrarian Policy.