KAZAKHSTAN: AI-RELATED IMPORT RESTRICTIONS ON

UNCLAS ALMATY 004276 SIPDIS DEPARTMENT FOR EUR/CACEN MUDGE AGRICULTURE FOR FAS/DLP, FAS/ITP, FAS/ICD ANKARA FOR FAS ATTACHE HIGGISTON TASHKENT FOR ESTH PLEASE PASS TO USTR FOR PBURKHEAD E.O. 12958: N/A TAGS: EAGR TBIO ECON ETRD PGOV KZ USTR SUBJECT: KAZAKHSTAN: AI-RELATED IMPORT RESTRICTIONS ON POULTRY REF: STATE 216147 ¶1. Summary: This cable responds to Reftel. Kazakhstan has placed import restrictions on poultry from countries where avian influenza has been detected. Additionally, some restrictions are in place on poultry from safe origin countries that transited a country covered by the import ban. Post is aware of one restriction affecting U.S.-source poultry that has transited China that is still in effect. Poultry prices in Kazakhstan have risen faster than the indices of consumer prices, but demand appears steady. Kazakhstan is not a member of the World Trade Organization. End Summary. ¶2. Kazakhstan currently has import bans in place on poultry from Cambodia, Indonesia, Japan, North and South Korea, Pakistan, Thailand, Vietnam, South Africa, Malaysia, China, the Philippines, Mongolia and six regions of Russia: Novosibirsk, Omsk, Kurgan, Tyumen, Chelyabinsk, and the Altay region. According to the Ministry of Agriculture, a decision to lift any of the bans will only be made on the basis of an official statement from the International Epizootic Bureau (OIE) that the avian influenza situation in a particular country had stabilized. ¶3. The import bans also extend to products that transit the affected countries and regions. U.S. exports to Kazakhstan are thus affected when they transit China or the affected regions of Russia en route to Kazakhstan. In September 2005 the USG protested the China transit ban to the GOK, but received a negative response. ¶4. Imported poultry has about a 60% share of the Kazakhstani market. Nearly 95% of those imports are from the United States. The shipping route for most of those imports is via the Georgian port of Poti and arrives in Kazakhstan at its Caspian port of Aktau. Thus, the import restrictions have not significantly affected U.S. exports. There is no indication that the availability of poultry has been affected since the internal measures taken to contain avian influenza cases that occurred in Kazakhstan were lifted. ¶5. Prices for poultry meat increased have increased only modestly since August, when the H5N1 virus was discovered in Kazakhstan. Prices for eggs increased sharply in September and October, by 7.8 and 8.1%. Eggs are mostly supplied by locals and it appears that the GOK's internal quarantine measures led to price increases. However, it appears that the demand for eggs is sufficiently inelastic that it remained normal despite the price increases. ¶6. Post will pass the Reftel talking points to the relevant Ministries as requested by Reftel. ¶7. Post does not believe that the measures taken by the Kazakhstani government lend themselves to further response besides continued engagement on the issue of poultry transshipped through China. Ordway