Protectionist custom duties applied for pork and fowl Romania imports from Hungary will be eliminated starting today, as the protection offered during the year since they were introduced has not helped Romanian producers be more competitive.
The announcement regarding the elimination of these duties was made in Cluj during a press conference by the Hungarian Agriculture and Rural Development minister, Torgyan Jozsef, who specified that this is a promise made by the Romanian Agriculture minister Ioan Muresan.
The protectionist custom policy the Romanian Government applied for imports of pork and fowl from Hungary has not reached its purpose, maintains the chairman of the Romanian Meat Association, Mihai Lungu. "Raising custom duties on imports is a useless move unless Romanian producers are supported by the state," Lungu told Ziarul Financiar. He added that the association he leads has been asking for a long time for a cut down in custom duties on imports from 45 to 25 percent or at least that an import contingent should be settled.
Romanian meat products manufacturers use, even in the context of high custom duties, between 30 and 50 percent imported raw material. As regard imports from Hungary, Lungu specified that they amount to approximately 25,000 livestock per month, ensuring 33 percent of the raw material of Romanian meat products plants. The Government decided on June 10, 1999, to suspend, on a one-year period, concessions on imports of pork and fowl and products of pork and fowl originating in Hungary. This decision was made to the end of protecting the domestic production and due to the high weight of imports of such products in the total amount of Romanian imports. Following this decision, custom duties on pork and fowl products imported from Hungary were settled at 45 percent, similar to the duty valid for the rest of Romania's trade partners that are not CEFTA members. This measure was adopted following the evolution of imports of pork and fowl from Hungary, given the high weight of these imports within the total volume of Romanian imports of such products and due to the situation of the domestic and international meat markets.
Along CEFTA relationship, Romanian customs levy a 28 percent duty on meat imports. In line with GAAT accord, which Romania has also signed, developing countries see certain branches threatened by imports.
Last year, Hungarian exports aimed at Romania dropped 26 percent, the most important evolution being registered in the case of food products, which came to half.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
