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Matthew Vella
The Ministry of Environment and Rural Affairs has told MaltaToday that Maltese importers of beef will be eligible for a preferential duty qualification upon accession to the EU.
Maltese beef importers are expecting prices to increase substantially as imported beef, originating from both the EU and outside the EU, will become more expensive to import come 1 May. Whilst the present levy of 10c on every kilo will be removed, non-EU beef will carry a duty of 12.8 per cent on value and an additional tariff of between EUR1.70 to EUR2.20 on every kilo.
According to MaltaToday’s calculations, non-EU beef purchased at an average price of Lm5.50 per kilo, which is presently charged a levy of Lm0.55c, would after accession be liable to a total duty of Lm0.70c, as well as an additional tariff of between Lm0.73c to Lm0.95c. Despite the removal of levies, non-EU beef is liable to increase by close to Lm2.00.
EU beef will be charged at the higher, internal price of EUR4.50 per kilo. Malta currently enjoys the competitive, lower external price on EU beef, which at EUR2.50 serves to enable the EU to compete with other beef producers on the international market.
Ministry sources, however, told MaltaToday that operators and importers of beef will be given the possibility, according to stipulated criteria, to register themselves as traditional operators.
The status is granted on the basis of recent annual imports by the same importer and, once granted, the Maltese importer would benefit from preferential duty rates on beef imported from countries outside the EU.
Those importers who will not qualify or whose application is not accepted by the European Commission will still be able to benefit from EUR850,000 in subsidies from the government on beef imported for local consumption in 2004.
“It is important to point out that the importer, who is granted the status of traditional operator, can also benefit from the government’s subsidies,” sources told this newspaper.
According to the Ministry, importers’ options to import beef from other non-EU countries would still be available from countries like Brazil and Argentina where the price of beef is very competitive, “notwithstanding the duty that has to be paid upon importation,” ministry sources said.
“Besides this, and also apart from the fact that beef producers will be benefiting from direct aid, Maltese consumers should benefit from very competitive prices when purchasing local fresh beef. The Ministry for Rural Affairs and the Environment is confident that, despite the changes that will come about in the way that Maltese importers do their business, the transition will be a smooth one.”
matthew@newsworksltd.com
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