Volga Baikal AGRO News Update on the protective measures for oilseeds export !!!
EAEU countries discussed protective measures for export regulation of oilseeds.
On June 16, 2021, consultations were held between representatives of the EAEU member states on the regulation of the export of oilseeds and fat and oil products, the regulation of the content of glycidyl ethers in food products.
Representatives of Russian business raised the issue of unifying the introduced protective export duties on oilseeds and sunflower oil in the EAEU countries, which was discussed at the Eurasian Intergovernmental Council on April 29, 2021 in Kazan. This is necessary for the efficient functioning of the EAEU single market and preventing the circumvention of export regulation measures.
In recent years, against the background of an increase in production capacities, a decrease in their utilization has been observed, which is associated with an increase in the export of oilseeds. This is becoming a problem, which is proposed to be solved by introducing protective measures to curb the export of oilseeds in order to increase the level of capacity utilization, employment of the population, and receive tax payments from processing enterprises to the budgets of countries.
Taking into account the falling incomes of the population, it is especially important to introduce a duty on a socially significant product – sunflower oil. Such a measure will allow not only to systematically reduce the price on the domestic market and keep affordable prices on store shelves, but also earn additional income, which can also be used to support the poor.
“Due to the high competition of processors for raw materials, the measures proposed by Russia will lead to parity of prices for oilseeds on the domestic market and the export value of processed products minus the minimum margin of the processor,” explains Mikhail Maltsev, executive director of the Oil and Fat Union. – “The introduction of duties will allow to maintain a balance of interests not only of producers, processors and the population, but will provide additional revenues to the budgets of countries from the export of products with higher added value, which is beneficial to all countries of the Eurasian Economic Union.”
They also discussed the completion of the domestic approval of the draft amendments No. 2 to the technical regulations of the Customs Union “Technical regulations for fat and oil products” (TR CU 024/2011). The Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan generally supported the draft amendments, the Russian Federation is completing the approval procedure.
The draft amendments No. 2 include all currently relevant provisions, the observance of which ensures the quality, identification and safety of vegetable oils. In particular, new concepts have been adopted that determine the requirements for vegetable oils, which are fat and oil raw materials and are intended for industrial processing at production facilities of edible fat and oil products. Requirements have been introduced for the conditions of transportation of fat and oil raw materials by all types of transport and its mandatory further processing after transportation by water transport. The safety index “glycidyl esters of fatty acids, calculated as glycidol” has been established, the standard and standardization objects of which are harmonized with the requirements in the European Union.
The parties agreed to consider the proposals of the Republic of Belarus on the introduction of norms on glycidyl ethers for all rationing objects simultaneously from 2025 when finalizing the draft amendments No. 2 to TR CU 024/2011 following the results of the domestic agreement. In addition, the participants in the consultations supported the need to prevent excessive and unreasonable standardization of glycidyl ethers in vegetable oils, which are fat and oil raw materials.