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USMEF South American Expo (Click on to download PDF form)

Russia

Russian Duty Plan Designed To Pressure EU

In retaliation for European Union (EU) plans to impose import quotas for grain next year, Russia is proposing setting annual import quotas for beef  (420,000 metric tons (mt)), pork (340,000 mt) and poultry (750,000 mt) and increasing the in-quota tariff from 15 percent to 25 percent for beef and 80 percent for pork. Russian red meat imports are up 33 percent so far this year.

USDA Secretary Anne Veneman told reporters November 4 that she is "very concerned" but she emphasized that Russian officials have made no concrete moves to follow through with the proposal and that she expected Russia to act in accordance with its ambition to join the World Trade Organization (WTO).

Russian cattle and hog producers see this as an opportunity to restrict imports through protectionist duties, but the Russian meat processing industry will be bitterly opposed since it relies on imports. Sources also informed USMEF that the State Customs Committee is also opposed to the measure, since higher duties mean more people will avoid paying them. Few analysts think the duty proposal is anything more than a posture by Russia to pressure the EU into changing its grain import policy.