Poland has launched dispute proceedings against Egypt at the World Trade Organisation with regards to a 45% safeguard duty tax added by Egypt to imported powdered milk.
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Warsaw has claimed that the tax is inconsistent with trade agreements and considers it unfair. In a statement, it said that imports of powdered milk in Egypt declined in the first two quarters of 2000 compared to the same period in 1999.
And it added that Egyptian milk production and sales volume increased from about 2.9 million tons in 1996 to about 3.6 million tons in 1999.
The Poles admit that there have been falls in the price of powdered milk in Egypt, but claim “it is difficult to prove that this fall in prices was caused by imports, which accounts only for 10% of the market share.”
By Monica Dobie, just-food.com correspondent
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