RIGA - Agriculture Minister Martins Roze has said that the European Commission may impose a fine on Latvia for stockpiling cheese, butter and skimmed milk in the run-up to accession to the European Union.
However, the minister said that Latvia does not accept the data calculated by the EC, as the stocks had not been accumulated artificially.
"Prior to May 1, we had a free trade agreement with the EU, in which a cheese quota had been set. But the importer in Europe had to undergo a rather complicated procedure by that date to get accreditation and financial guarantees, so three months before Latvia's accession to the EU, nobody was buying cheese, as the product has a rather long storage cycle," he told the Baltic News Service.
According to Roze, the EC is claiming that Latvia saw a decline in cheese sales before accession to the EU, while after the accession all the cheese products accumulated in the country were sold.
"Of course, after May 1 the administrative procedures were lifted, and the same cheese was bought in Europe for the same price from our companies. So it may seem that there was a decline in cheese exports ahead of Latvia's accession to the EU, but this is a calculation mistake," Roze said.
He said that the Finance Ministry and the prime minister had been informed about these issues. "Sanctions may be similar to those imposed for the accumulation of excess sugar stocks, but it will take a year to pass the decision," the minister said.
He also said that negotiations are continuing as regards stocks of food products that are not included on the regulation list.
"We are having difficult discussions. Currently, we are fighting for the pork and several poultry products included on the list incorrectly, as these products are not mentioned in the regulations," Roze said.
He said that for the time being Latvia is negotiating with the EC, but if forced the country will turn to the court to defend its position.
The minister also informed that consultations with the EC about food stocks would be held on May 31. It is expected that the report on sugar will accuse Latvia of accumulating 10,500 tons of surplus sugar stocks prior to May 1, 2004. The Agriculture Ministry, together with the State Revenue Service, is looking for the companies that might have stockpiled sugar for financial gain.
The EC is enforcing rules against pre-accession stockpiling in the new member states as it suspects the excess supplies might have been sold after EU membership for higher prices.
