MOSCOW - Russia could cut poultry and pork import quotas by hundreds of thousands of tons, the country's agriculture minister said Wednesday. The move could hit American producers hard and comes amid heightened tensions between Moscow and Washington over the war in ex-Soviet Georgia.
| TSN | 12.6 |
"It is time to change the quota regime and reduce imports, which have unfortunately built up in recent years," Alexei Gordeyev told reporters, according to the ITAR-Tass news agency.
He said domestic producers could make up the shortfall if imports were reduced.
Any substantial cuts would likely have a significant impact on U.S. poultry producers, for whom Russia is the biggest market. Russians sometimes refer to U.S. poultry imports as "Bush's legs," a reference to the frozen chicken shipped to Russia amid economic troubles following the 1991 Soviet collapse, when the current U.S. president's father was in office.
Earlier this week, Prime Minister Vladimir Putin backed proposals to freeze some of the agreements--particularly in agriculture--relating to its efforts to join the 153-member World Trade Organization. Officials claim Moscow agreed to certain conditions with member countries in return for their help in fast-tracking Russia's entry.
"Agreements signed more than three years ago as part of the negotiations on WTO accession are unfortunately no longer in Russia's interests," said Gordeyev. "To put it mildly, we've been deceived."
Last month, Russian and U.S. lobbyists agreed in principle to cutting poultry imports to Russia from 2009.
U.S. producers supply nearly 75 percent of the total poultry import quota set by Russia, which stands at 1.2 million tons.
An analyst said Russia's timing was no coincidence.
"It has been on the agenda for some time," said Chris Weafer, chief strategist at UralSib bank in Moscow. "But the fact that it has been mentioned now is almost certainly linked with the rhetoric that we've had from Georgia, and from Prime Minister Vladimir Putin. ... It has just been accelerated as a result of current events."

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