22 july 2011

During a working visit to Stupino, Vladimir Putin comments on the proposal of the Ministry of Agriculture and the Ministry of Economic Development regarding meat import quotas

Participants:

Vladimir Putin:  We will take the decision proposed by the experts at the Agriculture Ministry and the Economic Development Ministry. We, that is Russia, will consume 3,500,000 tonnes of chicken and other poultry this year. And we will produce 3,150,000 tonnes this year. So we will have a deficit of approximately 350,000 tonnes of poultry. That is the amount we will import this year.

Quite recently, a few years ago, we imported more than one million tonnes of poultry, so we have experienced a lot of growth. In 2011, Russia will consume some three million tonnes of pork, and we produce some 2,400,000 tonnes. So this year we will import some 600,000-650,000 tonnes. And next year, there will be a small increase in poultry production, and so we expect to import some 330,000 tonnes.

We will see a considerable increase in pork production, because we have been launching new livestock production facilities, pig farms. According to a preliminary estimate, we shall produce an additional 300,000 tonnes of pork. That is to say, next year we will import 350,000 tonnes of pork.

Indeed, we have considered other parameters in the negotiating process on our accession to the WTO, but we can use and accept them only once Russia fully joins the World Trade Organisation. If this does not happen, then the quotas that I have mentioned will remain in force. This is first.

Second, we will keep the import custom duties for products subject to quotas at 15%, and 75% for non-quota product. This is essentially a prohibitive import duty that will be very difficult to overcome. We are doing it, naturally, in the interests of domestic producers.

Again, we have been considering other options in the negotiating process. But, as I have said, we can only pursue these options if we also reach a package agreement on other issues and problems where our economic sectors would gain certain advantages. That’s the first thing. Second, we must also immediately reach an agreement with both the United States and the European Union. And third, we must be fully accepted into the World Trade Organisation.

Everything is possible. We have been quite flexible, but we have been working on joining the WTO for over 15 years. We intend to further negotiate, to seek compromises. The final result of a negotiating process is always a compromise that reflects the interests of all parties.