Information for fruit and vegetables business in CIS
Russian would like to increase import duties to 33-34% prior to joining WTO
Russian position on agricultural issues in negotiations on the country's WTO entry stipulates the increase of currently effective 16-percent import duties up to 33-34 percent. This was declared on July 3, 2002 by the First Deputy Minister of Agriculture Sergey Danquert. This measure will be temporary and later on the duties will be lowered to 23 percent. According to Mr. Danquert government support of agriculture is planned at around US $16bn per year.
He said that Russia has faced strong resistance on part of the negotiating members regarding both issues. For comparison he cited the following figures: government's support of agriculture in the EU amounts to US $60bn per year and in the US around US $19bn per year. Import duty for agricultural products in the EU is close to 30 percent and in the US - around 12 percent.
According to him, the next round of talks on agricultural issues will be held in the autumn of 2002. He emphasized that prior to WTO entry Russia needs to make all the necessary provisions concerning protection of farming, including export subsidies, government support, maximum import tariffs and quotas, etc., as since the moment of entering WTO Russia will not be able to introduce any extra protective measures.