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Large Trade Networks Association rejects any foodstuff capping
The Large Trade Networks Association of Romania (AMRCR) rejects any capping measures for foodstuff, as such interventions negatively affect markets in the whole food chain and will set up major imbalances on the lng run, association representatives say.
AMRCR communicated its stand towards the recent statements of the minister of agriculture about a possible capping of markup for all products processed in Romania.
“Mention should be made that a government order for capping markups for several categories of foodstuff has been extended several times and has already affected markets for a long time, is still in force until December 31, 2024. Until now, AMRCR has not been consulted about such a possible measure. According to Romania's engagement when signing the EU Accession Treaty and OECD accession negotiations, the freedom of trade must be guaranteed and product prices should be the result of demand and offer, of free market competition, and any intervention measures on economic price mechanisms will seriously distort the market and will create major long term imbalances,”the AMRCR press release mentions.
According to the source, public intervention policies in the mechanism of price creation can lead to investors' distrust in the future of Romanian economy and can determine the reevaluation of investment or expansion plans for the following years, starting with 2025.
At the same time, AMRCR reasserts its decision to make sure that the way of establishing prices for foodstuff is only the result of free competition, of demand and offer. In this respect, AMRCR says it will closely collaborate with national and European organizations it is part of and if needed, will promptly react at national and European levels with legal measures “to defend the freedom of trade”.
Florin Barbu, the minister of agriculture, declared on Tuesday, at a press conference, that all products processed in Romania will benefit from markup clapping and the draft order will be launched for debate soon, and then approved by the government.
“At present, we are talking to retailers and processors and the draft will be soon launched for public debate and then approved by the government. I cannot give you an exact deadline because it must be transparent. There are certain legal procedures, we must get approval from the Legislative Council, many approvals are needed for this order. It must be approved by the Finance Ministry, the Ministry of Economy and of Justice. We are talking about tens of thousand products, all procuts processed in Romania,”said the minister of agriculture after being asked about the coming into force or the order concerning all Romanian produce.
Barbu pointed put that the draft order is 90% ready, needing just the evaluation of retailers and processors for certain produce.