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EUROPEAN LIVESTOCK AND MEAT TRADING UNION / EUROPÄISCHE VIEH- UND FLEISCHHANDELSUNION
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t
“Let me recall that before Europa became a continent, in
Greek legend she was of course a woman. The god Zeus,
impressed by her beauty, disguised himself as a bull and
carried her off to Crete on his back.”
Mariann Fischer Boel
Member of the European Commission responsible for
Agriculture and Rural Development
O/REF: Note N-014-2008-EN
Brussels, 4th February 2008
Japanese & Russian Beef, Australian Pork:
How to protect or harm your country’s meat
production – Three different approaches to
international trade
Executive summary: Japan’s intention to continue with the current method of calculating its
beef import safeguard into Japan fiscal year (JFY) 2008 will help to forestall additional duties
on imported beef in the event of an import surge. In contrast, wishing to become a member
of the WTO promoting open trade, Russia will reduce import duties on out-of-quota beef from
45 percent but not less than 0.6 Euro per kilo for fresh/chilled and from 50 percent but not
less than 0.5 Euro per kilo for frozen to 30 percent but not less than 0.3 Euro per kilo from
19th February 2008 onwards. Out-of quota duties on pork in Russia will increase from 55
percent but no less than 0.9 Euro per kilo to 60 percent but not less than 1 Euro per kilo,
while out-of-quota duties on poultry will increase from 50 percent but not less than 0.4 Euro
per kilo to 60 percent but not less than 0.48 Euro per kilo. Meanwhile in Australia, a report on
consideration in the case for safeguard action against imports of pig meat has concluded that
imports are not to blame for the suffering Australian pig producers and represent no
considerable threat. Further submissions for the final report are invited.
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PART 1: AUSTRALIA - Pork producers’ pain not import-related
In late 2007, the Australian Government asked a Productivity Commission (PC) to undertake
a safeguards inquiry into the impact of imports of pig meat on the Australian pork industry.
The Accelerated Report was released on 20th December 2007 where the PC found that while
Australian pig producers are suffering serious injury, it appears to be due primarily to
increases in feed grain prices, not increased imports. Because the PC considered “that
evidence of causation from increased imports to serious injury is wanting”, it did not consider
whether there are critical circumstances warranting the imposition of provisional measures.
The determination against provisional action does not rule out a recommendation for
safeguard measures in the final report, to be completed at the end of March 2008.
In response to the release of the accelerated report, Australian Pork Limited (APL) issued a
statement indicating that Australian pork producers were “in shock”. APL’s CEO Andrew
Spencer said that he was very disappointed with the findings. “APL, along with hundreds of
Australian pork producers, are baffled that the PC has chosen not to see the link between the
record levels of pig meat imports and the worst producer profitability crisis in living memory,”
Mr. Spencer said, adding that, “The PC findings will result in another round of producer exits
from those that were taking a ‘wait and see’ approach to their current situations.” Press
reports Mr. Spencer said APL would make a submission to the Commission.
For the final report on the safeguards for consideration in the case for safeguard action
against imports of pig meat, the PC is now collecting further submissions for considerations
by the end of February to complete the report by the end of March 2008.
More info: www.pc.gov.au/inquiry/pigmeatsafeguards.
PART 2: RUSSIA – 20% import duty decrease for beef in February 2008
The Russian Government in the meantime has begun to lower its import duties for beef,
whilst increasing out-of-quota import duties on pork and poultry. It is seen as a move to
further appeal to the WTO by making significant import duty cuts. As such, 2008 out-of–
quota import duties will increase from 55 % no less than € 0.9/kg to 60 % but not less than €
1/kg for all pork categories. For all poultry categories 2008 out-of-quota import duties will
increase from 50% but not less than € 0.4/kg to 60% but not less than € 0.48/kg. For all beef
categories 2008 out-of quota import duties will decrease from 45 % but not less than € 0.6/kg
for fresh/chilled and from 50% but not less than € 0,5/kg for frozen to 30% but not less than
€0.3/kg. The Decree takes effect on 19th February 2008. For unofficial translation of the
Decree, see Annex 2.
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PART 3: JAPAN - Extension of the beef safeguard calculation in 2008
On 14th December 2007, the Japan’s Tariff and Foreign Exchange Council recommended
extending the current JFY 2007 beef safeguard calculation for another year. The Council’s
recommendation is expected to be approved by the Diet before April 2008.
If implemented in JFY 2008 (April 08 – March 09), it will be the third year in a row that
Japan’s Ministry of Agriculture, Forestry and Fisheries has managed the beef safeguard
under a special measure. Under the special measure, additional duties will not rise from
38.5% to 50% unless beef imports exceed 117% of an average of JFY 2002 and 2003 or
117% of the previous year imports, which ever is higher.
On preliminary basis, the trigger level for the first quarter of JFY 2008 (April 08 – June 08)
was calculated at 74,339 MT for chilled beef. The volume is 6,962 MT larger compared to the
level calculated under the ordinary method. For frozen beef the previous fiscal year’s imports
are used as a basis for calculating the 82,945 MT trigger point (because it produces a larger
number than a calculation based on a JFY 2002-2003 average). For the second quarter of
JFY 2008 (April 08 – Sept. 08), the trigger level is calculated at 152,455 MT for chilled beef.
This is 21,675 MT above what the trigger level would otherwise be. The graphs below
indicate these points.
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UECBV – 81A rue de la Loi (box 9) – 4th floor – 1040 Brussels, Belgium
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UECBV – 81A rue de la Loi (box 9) – 4th floor – 1040 Brussels, Belgium
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Annex 2
Russian Federation Government Decree No. 13 of January 19, 2008 “On the
Temporary Rates of Import Customs Duties with Regard to Individual Types of Cattle
Meat and the Introduction of Amendments to Resolution No. 732 of the Government of
the Russian Federation of December 5, 2005”
The Russian Federation Government does hereby decree:
1. To approve effective until December 31, 2008, the following rates of customs duties with
respect to different categories of meat of bovines contained in the Commodity Nomenclature
of Foreign Economic Activity of the Russian Federation (FEACN of Russia) approved by
Russian Federation Government Decree No. 718 dated November 27, 2006 “On the
Customs Tariff of the Russian Federation and the Commodity Nomenclature of Foreign
Economic Activity” (Collected Russian Federation Legislation, 2006, No. 50, Article 5341).
2. The following amendments be introduced to Russian Federation Government Decree No.
732 dated December 5, 2005, “On the Import of Beef, Pork, and Poultry in 2006-2009”
(Collected Russian Federation Legislation, 2005, No. 50, Article 5317; 2006, No. 50, Article
5341; No. 52, Article 5594; 2007, No. 4 Article 522; No. 20, Article 2427):
a) In Paragraph 4:
Sub-paragraph “a” the text “from December 15 of the previous year to August 1 of each
current year” be replaced with “from December 15 of the previous year to December 31 of
each current year”;
Sub-paragraph “b” be invalidated;
Sub-paragraph “e” be added as follows: From April 15 to December 31 of the current year:
The issuance of licenses for the import of 100 percent of the quantity of the goods set out in
Item 5 of Attachment No. 1 hereto to participants in foreign economic activity who last year
carried out the import of pork in accordance with the customs release regime, with allocation
before April 15 of the current year of the stated quantities proportionally to the annual
quantities of pork imported by these participants to the customs territory of the Russian
Federation from January 1 to December 31 of the previous year, with the exception of pork
originating in and imported from CIS member states. The issuance of licenses for the import
of said goods from the European Union member states, USA, and Paraguay be performed
after the issuance of licenses for the import from these states of 100 percent of the quantity
of the goods set out in Item 3 of Attachment No. 1 hereto.”;
b) In the column “2008” of Attachment No. 2:
In Item 3, Fresh, Chilled or Frozen Pork, Including Trimming (FEACN of Russia code 0203)
the text “50, but not less than 0.83 euro per 1 kg” be replaced with “60, but not less than 1
euro per 1 kg”; In Item 4, Meat and Edible Poultry By-products as Set out in Commodity Item
0105, Fresh, Chilled or Frozen (FEACN of Russia code 0207) the text “50, but not less than
0.4 euro per 1 kg” be replaced with “60, but not less than 0.48 euro per 1 kg”.
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3. The Ministry of Economic Development and Trade submitted to the Russian Government
in accordance with the established procedure a draft decree on the termination, in the event
of the accession of the Russian Federation to the World Trade Organization (from the date of
the international treaty on the accession of the Russian Federation to the World Trade
Organization), of the hereby established maximum rates of import customs duties on fresh,
chilled or frozen pork, including trimmings (FEACN of Russia code 0203), as well as on meat
and edible poultry by-products as set out in commodity item 0105, fresh, chilled or frozen
(FEACN of Russia code 0207).
4. This Resolution shall come into effect one month after the date of its official publication.
Prime Minister,
Russian Federation
V. Zubkov
APPROVED
Resolution No. 13 of the Russian Federation Government 19 January, 2008
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UECBV – 81A rue de la Loi (box 9) – 4th floor – 1040 Brussels, Belgium
Tel : +32 2 230 46 03 – Fax : +32 2 230 94 00 – Email : info@uecbv.eu
www.uecbv.eu