Ordinance On Retail Good Practice Code To Be Enforced In Max 3 Weeks –Agr Min

Sarbu said he demanded that the draft be finalized in three days maximum, and added the emergency ordinance might be enforced in two-three weeks, pending approval procedures.

The minister said the prices of food products in the large chain stores might drop in about one month after the normative act is enforced.

The minister said the prices of food products in the large chain stores might drop in about one month after the normative act is enforced.

Sarbu met representatives of retailers and producers on Tuesday to discuss drafting a law out of the Code of Good Practice.

“One cannot come to a meeting with homework undone. It’s a slip, a negligence, there are many administrative things that we will solve,” Sarbu said.

Romalimenta president, Sorin Minea, said the version of the draft presented by the minister is very ambiguous and difficult to apply.

“Nothing is imposed for any of the parties. Practically, the one with the highest negotiation power, let’s not say who, will impose any clause they want, just like before. Nothing has changed,” Minea said.

The minister admitted he came to the meeting thinking the current draft version is the one negotiated last year and apologized several times.

“I came to the meeting convinced that things were clear. Now I see they aren’t, they are even tangled. Now we all see that what you’ve discussed last year in October and November, is not included in our ordinance. Under these conditions, we have to come back to what you established then,” Sarbu said.

After he left, representatives of the retailers and producers discussed the draft they had agreed upon, and not the one the minister brought Tuesday, and the two parties will meet again Friday.

At the end of talks, Catalin Rosculete, state secretary within the Agriculture Ministry, said the new draft ordinance will be ready on Friday, and its enforcement will bring about a drop in food prices.

Adrian Manolache, secretary general within the Association of Large Chain Stores in Romania, or AMRC, said shelf price do not depend entirely on the taxes the producers complained about.

On the other hand, Minea said prices will drop and will differ depending on the expenses of each chain store, when the acquisition price is defined.

He added the prices will drop by 30% in two-three months after the draft emergency is enforced.

Minea reminded of the negotiations to set shorter deadlines for the stores to pay for the suppliers’ merchandise.

Head of Romalimenta said the value added tax for food products should be reduced, as this tax leads to high prices and to the enlargement of the black market.

Romanian producers and retailers signed in July 2008 the Code of Good Practice regarding trade of food products and the Code became effective after the competition authority said it did not breach competition rules.

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