The meat and dairy producers of Moldova warn they will be unable to cope with the competition of the similar products made in Ukraine. According to them, from January 1, 2016, Russia banned the import of a number of Ukrainian products, including dairy and meat products, and 35 Ukrainian companies were authorized to export animal products to Moldova. In a press release, quoted by IPN, the chairman of the Association “UniAgroProtect” Alexandru Slusari says the created situation endangers the national animal breeding sector.
“Starting with April 2015, the meat producers are obliged to pay VAT of 20%, while the agricultural producers of Ukraine pay only 15% of the calculated VAT. The price of fodder in Ukraine is by about 30% lower than in Moldova, the electric power is by almost 135% cheaper, while of gas – by 16%. The insufficient border control contributes to increased smuggling,” stated Alexandru Slusari.
According to him, in such conditions the national meat and dairy producers will be unable to cope with the competition from the companies importing from Ukraine. “UniAgroProtect”, the Employers Association of Milk Produces and the Association of Producers from the Poultry Industry started to feel the pressure exerted by the meat and dairy products imported from Ukraine last year. “In June 2015, the milk processors had to close a number of milk collection points for a period,” stated Slusari.
On December 18, 2015, the mentioned associations sent a letter to the authorities, asking that they should launch investigation procedures in accordance with the norms of the World Trade Organization and the CIS Free Trade Agreement, which provide that protection customs duties are introduced when imports from a country rise by over 15%.
