July 19, 2012

Russian body seeks restrictions on Belarus poultry imports

The Russian Union of Poultry Producers (Rosptitsesoyuz) has requested the government to impose restrictions on poultry imports from Belarus as it claims that the latter has violated trade agreements.

In particular, Rosptitsesoyuz noted that Belarus' manufacturers were exporting five times more poultry to Russia than agreed on the food balance sheet signed by the two countries, which put poultry imports at a maximum of 15,000 tonnes.

Galina Bobyleva, general director of Rosptitsesoyuz, said: "We ask to limit the supplies, as the balance sheet exists and the parties must follow it. In Russia, the domestic production of poultry meat is rising, and imported production, which is cheaper than domestic production, threatens losses to Russian manufacturers.

"According to the budgeted balance sheet for 2011, Belarus was to export only 15,000 tonnes of chicken to Russia, but it exported nearly 75,000 tonnes, resulting in Belarus becoming the second-largest exporter of poultry meat to Russia after the US."

Bobyleva stated that the violation of trade agreements had continued in the beginning of 2012. "During the first quarter of 2012, Belarus shipped 35,000 tonnes of poultry meat to Russia," she added.

However, the Eurasian Economic Commission (EEC) believes Russia has no right to restrict the supply of agricultural products from its partners in the Customs Union.

"Quotas are often provided in balance figures of mutual trade. In today's model, the forecast balance is on the plans for the parties, which allows them to ensure mutual supplies of agricultural commodities. So the requests of some groups of producers to restrict trade, based on these figures, are destructive and contrary not only to the basic agreements on the establishment of a common economic space, but also the principles of fair competition," said the director of the Department of Agrarian Policy of the EEC, Hadejda Kotkovets.

Experts also pointed out that, in this case, Russia itself may be subject to certain trade sanctions.