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Foods product prices will not increase after joining union: Kazakhstan Agriculture Ministry

Business Materials 15 January 2010 14:18 (UTC +04:00)
Kazakhstan will not see an increase in major food product prices after the country’s entrance into the Customs Union Jan. 1, Agriculture Ministry Agro-Industrial Complex Refining Industry Department head Ayna Kusainova said in a briefing in Astana.
Foods product prices will not increase after joining union: Kazakhstan Agriculture Ministry

Kazakhstan, Astana, Jan. 15 / corr Trend K.Konirova /

Kazakhstan will not see an increase in major food product prices after the country's entrance into the Customs Union Jan. 1, Agriculture Ministry Agro-Industrial Complex Refining Industry Department head Ayna Kusainova said in a briefing in Astana.

"No price rise is scheduled as some 70 percent of major food product types are imported from Russia, Ukraine, and Kyrgyzstan. Even after the Soviet Union's collapse, Kazakhstan realized trade operations with these countries without collecting customs duties," Kusainova said.

Customs duties will not be imposed on food products from these countries, she underscored.

Kusainova stressed that the union focuses on confirming a unified customs tariff for all types of goods, as well as unifying phyto-sanitary legislation.

The unified customs tariff will be established differentially depending on the group of goods.

"Low customs tariffs will be applied on several types of products, which are traditionally not produced in the territory of our country, such as tea," Kusainova said.

The unified high customs duty will be set for products which are produced in our country, but also imported from other countries not entering the Customs Union.

"Customs duties were increased for goods which we produce. These are rice and starch, as well as several types of facts, oil and diary products, which the country imports, too," she said.

The food products for which the country is capable to meet its demand through its potential were also taken into account, Kusainova explained

"Our products became less competitive due to supply of rice and starch from China and Thailand. In this connection we are applying high customs tariffs on these types of products so that to help our producers," Kusainova underscored.

The protective measures in all three countries are injected in accordance with unified rules, Kusainova added.

Since Jan. 1, Kazakhstan, Russia and Belarus established the Unified Customs Union with the total market capacity of 170 million men and total GDP of $2 trillion.

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