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Ukraine Government Proposes Lower Import Duty on Food

Source: Reuters
09/04/2008

Kiev, April 9 - Ukraine's government, battling record inflation levels, has proposed to parliament significant reductions in import duties on food, according to a bill made public on Wednesday. The lower duties will also enable Ukraine to comply with regulations of the World Trade Organisation -- which has already agreed to admit the ex-Soviet state.

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The bill, posted on parliament's Internet site www.rada.gov.ua, called for duty reductions of about 50 percent for meat, milk and flour. Lower reductions were proposed for industrial goods.

"Reducing the levels of duty for food will allow Ukraine to comply with its international obligations and also provide for the needs of Ukrainian consumers," the government said.

"Internal production alone does not allow for stable food prices."

Authorities have repeatedly said Ukraine can meet more than 90 percent of its own food needs, but sharp price rises in recent months have been a major factor in the country's high inflation rate.

Inflation in March hit its highest level since 1999 and cumulative price rises for the first three months of 9.7 percent the year exceeded the government forecast of 9.6 percent for the full year.



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