Chairman of the Chamber of Commerce and Industry of South Ossetia: the Trade Mode Agreement Could Lead to Reducing of Prices

Sat, 03/03/2012 - 15:28

Blitz-Poll: South Ossetia and Russia signed an intergovernmental agreement "On the mode of trade in goods," which will provide for duty-free trade between the two countries. How, in your opinion, it will affect the economy of the Republic?

Roin Kozaev, head of the Chamber of Commerce and Industry of South Ossetia:
The agreement will allow free trade between South Ossetia and Russia. South Ossetian goods, exported to Russia, will not be imposed to Russian taxes, and the Russian goods, imported into South Ossetia, will not be taxed. But it does not cover all the commodities. There are products that will be taxed - sugar, wine, beer, mineral water, etc. Goods, imported from Russia to South Ossetia, are not manufactured in our Republic, so the Russian commodity producers will not meet any competition in our Republic.

At the same time, our agricultural products will be competitive in the market. Thus, our exported production, (except the above-listed), will be profitable. This agreement, in addition, may lead to reduction of prices or to recession of their increase. This Agreement contains a good clause that allows the two sides to make additions and amendments in case of need. I have appreciated the signing of the Agreement positively.

Svetlana Dzhioeva, an economist:
Duty-free trade will only facilitate the conditions for consumers, but it will not contribute to economic growth. Perhaps, the price of gasoline and some products will become more acceptable, but the economic growth of our republic will be real only with our individual production. And the imported goods will not promote this process. We need to develop agriculture and the economy as a whole.

Vadim Tskhovrebov, Deputy Chairman of the Parliamentary Committee on Budget and Taxes:
Signing the agreement on the trade mode between Russia and South Ossetia will affect our economy, by all means, very well. I wish the taxes in our Republic would also be reduced... We are struggling not to be taxed at the border, but at the same time we are not creating appropriate conditions for our entrepreneurs – we are not simplifying the tax system, that does not extend the scope for lending. You can, for example, to minimize the taxes for five years, that people would be able to produce something. In addition, the agreement may help to reduce the prices on food and fuel in the Republic. Our domestic market is competitive. Up to now only very close to the tops had the opportunity to import goods into South Ossetia, but now, I think, ordinary people will be able to work. There will be a competition, and it is very positive movement.

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