Proportion of farm products imported into Belarus may be reduced by 25-30% – Academy of Sciences
<p> MINSK, Nov 17 - PrimePress. The proportion of imported farm products and foods, analogues of which are produced in Belarus can be reduced by 25-30%, the National Academy of Sciences of Belarus (NAS) believes. </p> <p> </p> <p> This concerns the import of meat, fruits and vegetables, drinks, confectionery and flour products, etc. </p> <p> </p> <p> No more explicit import substitution programs </p> <p> </p> <p> The NAS says that Belarus will not work on an import substitution program in an explicit form because of the planned accession of Belarus to the World Trade Organization, as this may cause trade disputes on contradiction to a number of WTO’s fundamentals, particularly the mutual most favored treatment in trade and granting national treatment to goods and services of foreign origin. </p> <p> </p> <p> Belarus’ import substitution programs had been implemented until 2011 under the supervision of the Economy Ministry. They covered the goods, the analogues of which are produced in Belarus, but not in sufficient quantity or the consumer properties of which are significantly inferior to those of imported goods; the goods, production of which is planned; the goods that are not produced in Belarus and the substitution of which is economically inexpedient or impossible for objective reasons. </p> <p> </p> <p> Not binding recommendations </p> <p> </p> <p> The Trade Ministry approved in February 2020 recommendations to ensure compliance with the National Food Security Doctrine of the Republic of Belarus for the period to 2030. The share of domestically produced foods in retail trade is suggested to be increased to 80-85% from current 77.5% (January-September 2020) to compare with 83.3% in January-September 2013. </p> <p> </p> <p> The recommendations are not binding. They are similar to the so-called “Code of Good Practice.” A list of trade organizations that voluntarily follow the recommendations to ensure compliance with the National Food Security Doctrine is available on the ministry’s website. </p> <p> </p> <p> Import cuts not goal in itself </p> <p> </p> <p> The import optimization should take into account domestic demand based on efficient use of imported goods and ensuring competitive, efficient domestic production. A reduction in imports can disrupt the domestic market balance, says the Academy of Sciences. </p> <p> </p> <p> Commodity imports to Belarus in 2019 amounted to $39.5 billion, of which 11.6% ($4.6 billion) fell on imports of farm products and foods. </p> <p> </p> <p> The main EEU FEACN 4-digit import items include </p> <p> 0603 – cut flowers and buds suitable for making bouquets or for decorative purposes ($367.2 million); </p> <p> 0808 – fresh apples, pears and quinces ($211.6 million); </p> <p> 1201 – crushed and uncrushed soybeans ($184.4 million); </p> <p> 0303 – frozen fish, except for fish fillet and fish commodity item 0304 ($146.1 million); </p> <p> 1905 – bread, flour confectionery, cakes, cookies, etc. ($134 million); </p> <p> 2306 – mill cake and other solids from extraction of vegetable fats or oils other than those listed in items 2304 and 2305 ($133.2 million); </p> <p> 1806 – chocolate and other food products containing cocoa ($122 million); </p> <p> 2304 – mill cake and other solid residues from soybean oil extraction ($121 million); </p> <p> 2309 – products used for animal feeding ($120 million); </p> <p> 0302 – fresh or chilled fish except for fish fillets and other fish of commodity item 0304 ($114 million). </p> <p> </p> <p> Imports to serve as driver for exports </p> <p> </p> <p> The development strategy for the Belarusian agricultural sector should be export-oriented. Imports should be auxiliary and be an intermediate stage to increase export opportunities, the NAS says. </p> <p> </p> <p> “Import substitution is only effective if domestically produced products are competitive with imported ones both in terms of quality and price. That is why it is particularly important to improve the quality of Belarusian products and reduce their production costs,” the NAS says. End </p>
2020-11-18
Primepress
MINSK, Nov 17 - PrimePress. The proportion of imported farm products and foods, analogues of which are produced in Belarus can be reduced by 25-30%, the National Academy of Sciences of Belarus (NAS) believes.
This concerns the import of meat, fruits and vegetables, drinks, confectionery and flour products, etc.
No more explicit import substitution programs
The NAS says that Belarus will not work on an import substitution program in an explicit form because of the planned accession of Belarus to the World Trade Organization, as this may cause trade disputes on contradiction to a number of WTO’s fundamentals, particularly the mutual most favored treatment in trade and granting national treatment to goods and services of foreign origin.
Belarus’ import substitution programs had been implemented until 2011 under the supervision of the Economy Ministry. They covered the goods, the analogues of which are produced in Belarus, but not in sufficient quantity or the consumer properties of which are significantly inferior to those of imported goods; the goods, production of which is planned; the goods that are not produced in Belarus and the substitution of which is economically inexpedient or impossible for objective reasons.
Not binding recommendations
The Trade Ministry approved in February 2020 recommendations to ensure compliance with the National Food Security Doctrine of the Republic of Belarus for the period to 2030. The share of domestically produced foods in retail trade is suggested to be increased to 80-85% from current 77.5% (January-September 2020) to compare with 83.3% in January-September 2013.
The recommendations are not binding. They are similar to the so-called “Code of Good Practice.” A list of trade organizations that voluntarily follow the recommendations to ensure compliance with the National Food Security Doctrine is available on the ministry’s website.
Import cuts not goal in itself
The import optimization should take into account domestic demand based on efficient use of imported goods and ensuring competitive, efficient domestic production. A reduction in imports can disrupt the domestic market balance, says the Academy of Sciences.
Commodity imports to Belarus in 2019 amounted to $39.5 billion, of which 11.6% ($4.6 billion) fell on imports of farm products and foods.
The main EEU FEACN 4-digit import items include
0603 – cut flowers and buds suitable for making bouquets or for decorative purposes ($367.2 million);
0808 – fresh apples, pears and quinces ($211.6 million);
1201 – crushed and uncrushed soybeans ($184.4 million);
0303 – frozen fish, except for fish fillet and fish commodity item 0304 ($146.1 million);
1905 – bread, flour confectionery, cakes, cookies, etc. ($134 million);
2306 – mill cake and other solids from extraction of vegetable fats or oils other than those listed in items 2304 and 2305 ($133.2 million);
1806 – chocolate and other food products containing cocoa ($122 million);
2304 – mill cake and other solid residues from soybean oil extraction ($121 million);
2309 – products used for animal feeding ($120 million);
0302 – fresh or chilled fish except for fish fillets and other fish of commodity item 0304 ($114 million).
Imports to serve as driver for exports
The development strategy for the Belarusian agricultural sector should be export-oriented. Imports should be auxiliary and be an intermediate stage to increase export opportunities, the NAS says.
“Import substitution is only effective if domestically produced products are competitive with imported ones both in terms of quality and price. That is why it is particularly important to improve the quality of Belarusian products and reduce their production costs,” the NAS says. End