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Cabinet proposes to VR to cancel milk output/sale quotes, export subsidies
27.10.2006 16:35 "Agro Perspectiva" (Kyiv) —
Cabinet has elaborated draft Law (registered in VR under № 23921) stipulating Parliament should cancel milk/dairy products export subsidies as well as milk output/sale quotes by bringing corresponding changes into Law «About Milk and Dairy Products». Draft Law is targeted at assuring Ukraine WTO joining and fulfilling of obligations taken by Ukrainian side within bilateral talks with WTO Working Group countries on examining of Ukraine application for WTO joining; draft Law is also aimed at coordinating of some provisions of Ukrainian Law «About Milk and Dairy Products» with Ukrainian Law «About State Support of Agriculture of Ukraine». As to draft Law explanatory note, WTO inward regulations prohibit its member-countries to subsidize export; WTO regards introduction of any quotes as trade relations’ restriction. It is to be admitted, Cabinet is convinced introduction of quotes on agricultural companies’ milk production (as well as further milk sales to processors) is now premature, due to current Ukrainian milk output is so far twice down against country processors’ demand. Draft Law as well suggests to remove from Law «About Milk and Dairy Products» provisions stipulating price formation in sphere of milk and dairy resources/products’ production, due to these problems having been already solved in Laws «About State Support of Agriculture of Ukraine» and «About Prices and Price Formation». Besides, draft Law also proposes to annul article 19, stipulating creation of Ukrainian Fund for Promotion of Milk and Dairy Products’ Market Development (fees to which should be paid by country milk production/processing economic entities).
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