EEC notes the growth of dairy products imports into CU

ST PETERSBURG. KAZINFORM - Raw milk resources deficit in the market of the Customs Union, decrease rates of the Common Customs Tariff on a number of dairy products in connection with tariff commitments to the WTO as well as uncompetitive pricing of some dairy products have led to import increase from the non-CIS countries to the CU.
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Such conclusion has been made by experts of the Eurasian Economic Commission after studying the situation on the market of milk and milk products in the Customs Union. "In January - November 2013 cost volume of dairy products imports to the Customs Union form non-CIS countries increased by 25.7 %, physical - by 17.6 % compared with the same period in 2012. In particular, imports of cheese and curd increased by 12%, yogurts and kefir - 33%, butter - by 46 %, while the import of dry and condensed milk and cream increased by 2.1 times", said the member of Chambers (Minister) on trade of the Eurasian Economic Commission Andrey Slepnyov. According to EEC, among other reasons for the growth of dairy imports from non-CIS states is the deterioration of dairy herds in the CU. ‘'The main risks that we note are associated with a deficit in the market of raw milk which can lead to the fact that the producers of the CU would lose part of the total dairy market and the efficiency of interaction between agro-industrial cluster participants will be at risk. We already observe an increase in imports of butter, powdered milk and cheese from foreign countries. Finally, milk as well as corn, is a key product for food security", summarized Andrey Slepnyov. "In this situation, the system requires joint action to improve the competitiveness of dairy farming and dairy industry within the CU. It is important to understand that the possibility of customs and tariff regulation is strictly limited by obligations of Russia's participation in the WTO'', he concluded.

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