New rules to protect Czech producers from cheap foods dumped due to Russian sanctions

The government has moved to protect the Czech food market against cheap imports diverted to the country due to Russia’s embargo on food products from the EU. Importers are now required to report some types of incoming food products to two days before their arrival, and inform the authorities of their estimated retail price. But some in the Czech food industry are questioning the effectiveness of the measure.

Photo: Kristýna Maková

Russia’s retaliatory embargo on food imports from EU countries is likely to cost Czech food producers between 250 and 300 million crowns, according to estimates by the country’s Agriculture Ministry. The ministry also believes that food from other EU member states diverted to the Czech market because of the sanctions is costing domestic producers up to 1.5 billion crowns.

Some cheap food originally destined for Russia has already been put on sale in the Czech Republic. On Thursday, the news agency ČTK reported that Polish cabbage was sold in the northeastern city of Ostrava at prices far below the national average.

In order to protect the market against cheap imports, the government has ordered importers to report all incoming animal food products and some types of fruit and vegetables to the authorities two days before their arrival. These include apples and pears as well as potatoes, cabbage, tomatoes and onion.

Miroslav Koberna, photo: archive of Radio Prague

The new rules, which come into force on Friday, also require importers to notify the authorities of the expected retail prices of the imports. The Czech Federation of the Food and Drink Industries welcomes the move, says its executive director Miroslav Koberna.

“This allows the authorities to react to suspicious imports. They will know if someone is importing unexpected quantities of products at dumping prices. So this creates no trade barriers as some have claimed. It’s simply a monitoring tool.”

However, Agriculture Minister Marián Jurečka warned that if the authorities conclude that some foreign products are indeed sold at dumping prices, they will ban the imports of that type of food.

The rules have come under criticism from importers as well as some in the food industry. For instance, the authorities’ ability to identify what is and what is not a “dumping price” has been questioned. Others have expressed concern that the new rules go against the principles of the EU’s free market. Marta Nováková is the head of the Czech Confederation of Commerce and Tourism.

Marta Nováková, photo: Czech Television

“As part of the EU’s single market, the Czech Republic can only monitor imports from countries outside the EU. I think the issue of food imports should be primarily dealt with on the EU level. We should focus on trying to export food to markets outside the EU rather than creating such barriers at the national markets of individual EU member states.”

The Agriculture Ministry is also planning to support domestic producers with a campaign promoting home-grown food. The campaign is set to start in mid-October and should cost around 50 million crowns.