August 18, 2006

Bird flu in US threatens poultry exports to Russia

Russia, the world's largest poultry importer, may halt its poultry imports from the US state of Michigan due to bird flu cases there, the country's Federal Veterinary Service said on Wednesday (Aug 16).

Controls over US poultry supplies would also be tightened while Russia waits for the US to confirm whether it was the deadly H5N1 strain of bird flu, the veterinary service said.

Control over US meat exports is one of the last issues to be resolved in the WTO negotiations between Russia and the US. The two countries were expected to sign the final protocol, in the middle of July. However, on the last day, the sides failed to see eye to eye on meat and poultry exports.

While the US did not want Russian veterinary authorities to further examine exports that have reached Russia, the Russian side insisted that special veterinary commissions have to check the US producers.

Michigan's bird flu case is likely to give Russia more ammunition to press its case.

Economy Minister German Gref had said in a letter to US Trade Representative Susan Schwab that Russia may withdraw proposed preferences for US poultry and red meat shipments if the latter fails to endorse Moscow's bid to enter the World Trade Organization within three months.

Russia had hoped to work out a WTO deal with the US to pave the way for Moscow's 13-year-old bid for membership in last month's negotiations.

The Russian government may not be able to deny Russian farmers who want revised meat quotas and annul concessions that Russia gave to the US in the hopes of settling the WTO issue, the statement said.

The two countries signed a deal last year under which the US was allowed to gradually increased the amount it shipped under a discount tariff over a four-year period.