August 1 2006, 09:56

Russia's entry to WTO will result in rapid growth of fruit and vegetable import to the country

According to information provided by Russian informational agencies, if Russia enters World Trade Organization, the import tax for produce will substantially decrease, especially for tropic fruits which are not grown in the country. The taxes for other agricultural products will not be changed much. Russia also plans to preserve tax-free trade with other CIS countries.

According to information provided to "Agrooglyad: Vegetables and Fruits" journal by Andrey Yarmak, the Deputy Director of the Agricultural Marketing Project, the decreased import tax for fruits and vegetables to Russia may lead to rapid growth of imported produce shipments to this market. Russia has already been one of the largest produce importers in the world. And, recent Russian prices for fresh vegetables, fruits and berries steadily tend to be the highest in Europe. As a result of tax decrease, the import supplies of banana and citrus fruits can grow much; it also refers to peach, nectarine, apricot, table grape, nearly all kinds of berries and some types of vegetables, especially early vegetable varieties.

At the same time, to expert's opinion, Russia is actively preparing to enter WTO right now. The country purposely keeps the prices for produce high. High prices are formed because of banned fruit and vegetable supplies from different countries; at the same time, high prices stimulate the interest to this business from the side of Russian and foreign entrepreneurs who are readily investing to the vegetables, fruits and berries production and processing in Russia.

However, banned fruit and vegetable supplies, as well as grape wine supplies can become one of the obstacles of Russian way to the EU. Those countries - WTO members which are subject to the ban, are going to block Russia's entrance to the European Union. Russia will not enter WTO either in 2006 or 2007 - such messages have become more frequent recently. That's why, the boom of fruit and vegetable import to Russian market is delayed now for indefinite period of time.