Russia's Limit on Meat Imports Harms China's Exporters

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Last updated at: (Beijing Time) Wednesday, March 19, 2003

Russia's Limit on Meat Imports Harms China's Exporters

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Russia's new restrictive measures on meat imports have spurred China's meat exporters, worried that the new regulations will have a severely negative impact on the domestic market, to plan a journey to the country to negotiate.

"We will visit Russia very soon to discuss the issue," said an official with the China Chamber of Commerce for Imports and Exports of Foods, Native Produce and Animals, the country's largest meat traders' organization.

Russia has announced that it intends to impose a quota on poultry imports for three years and a tariff quota on livestock meat imports for four years starting from April 1.

Its quota on this year's poultry imports from China stood at 3,100 tons, less than one-10th of China's actual exports to Russia last year.

It is estimated that the measure will do direct economic harm to over 300,000 Chinese peasants.

The chamber of commerce official, who declined to be named, said Russia's measures have caught the attention of officials from the Chinese Government and the chamber of commerce.

He said they have had negotiations on the issue with the Russian Government.

Chinese trade officials were not immediately available for comment.

Meat is an important item in Sino-Russia bilateral trade. China exported 80,000 tons of pork worth US$93 million and 32,000 tons of poultry worth US$30.09 million to Russia last year.

In order to export to Russia, a large number of firms specializing in meat production, transportation and sales have come into being in China over the past few years.

Over 100 Chinese companies have been officially recognized by Russia and a considerable number of companies have established stable partnerships with Russian clients.

Chinese exporters have suffered huge losses since Russia announced the restrictive measures on meat imports.

Uncertain whether they can get the necessary quota, Russian clients are afraid to order from China. As a result, China's meat stock increases and the burden of storage fees and bank loan interest on Chinese exporters have risen.

The new restriction on meat imports has aroused indignation from firms inside and outside Russia.

In a letter to Russian President Vladimir Putin, the Russian meat product association called for him to redress the government's decision and protect the interests of companies, reported Russian media.

It said the restrictive measure will virtually block meat imports, raise meat prices in Russia and damage Russian meat processors and producers instead of protecting domestic industries.

Twenty-four United States associations of producers, processors and traders of meat, grain and other farm produce have written to US President George W. Bush, saying that the restrictive Russian trade measures will halve sales of US poultry in its largest overseas market, calling for immediate action and tough retaliative measures.

The world's major meat exporters, including the United States, the European Union and Brazil, have asked Russia to call off the restrictive measures at a meeting on Russia's accession to the World Trade Organization, which has just concluded.

Otherwise, the new measures could have negative effects on Russia's WTO accession, they said.

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