Lawmaking in 2015 it’s a stumbling-block for import of meat products

In late 2014 and early 2015 the deputies of The Verkhovna Rada of Ukraine adopted the Law "On measures on stabilizing Ukraine’s payment balance according to article XII of the General Agreement on Tariffs and Trade of 1994". The Law introduces additional import duty of 5% and 10% (it concerns meat products import). Additional fee applies to all importers which import raw meat to Ukraine territory.

The draft law before it adoption was passed in three readings, but the final decision about the Law introduction will be taken after consultation with the IMF and EU representatives.

Such innovations in domestic law rocked the Ukrainian importers. Disadvantageous draft law and hryvna (UAH) devaluation affect the attractiveness to cooperate with Ukrainian companies.

As reported in mass media in the past year imports of meat products (pork, beef and poultry) declined in several times. For example, the total volume of imported pork reached 31 thousand tons less. Poultry meat and offal were imported about 62 thousand tons, which is 14.5% less than in 2013.

The Ministry of Economic Development predicts a significant decrease in imports of meat and meat raw in the current year. Experts suggest that total imports of meat products will be reduced to 16% compared to 2014 and total volume will be almost 170 thousand tons. In particular, the volume of imported pork will be 17.4% less, poultry - 21.9% less and beef – 37.5% less. Also experts predict increasing in meat exports. The lion's share of exports is given to poultry - is projected that Ukraine will export about 210 thousand tons of poultry meat and offal.