Currently, the Eurasian Economic Commission (hereinafter - the EEC, the Commission) is conducting an anti-dumping investigation of European herbicides on the market of the Eurasian Economic Union, a preliminary report on which is published on the official website of the EEC. Dana Zhunusova, Deputy Chairman of the Board of NCE RK "Atameken", notes: "As it is known, the Treaty on the Unified Energy System provides for the application of an anti-dumping policy - the reaction of the state to the situation when the goods imported to the domestic market from third countries are sold at a lower price than in the seller's market and ( or) below the cost of production. In practice, this is realized through the introduction of an anti-dumping duty in respect of artificially cheapened products for imports (a fixed surcharge to the value of the goods).

"It should also be noted that anti-dumping measures are applied when there is an increase in imports that causes damage to the production of a similar product in the Union, and the Rules for the use of anti-dumping policy should be based on the regulations of the World Trade Organization (WTO), while the anti-dumping investigation initiated by the Russian side with respect to herbicides from the European Union (hereinafter referred to as the EU) is currently under completion.

The accusations of herbicide manufacturers from the EU (companies ADAMA, Bayer, BASF, DuPont, Syngenta, Monsanto and others) in violation of the rules of fair competition and infringement of competing productions of the member states of the Union were the grounds for the investigation. At present, about 20 companies operate on the herbicide market of the Union, with a total production volume of about 69 thousand tons (RF - 69%, RB - 17.2%, RK - 13.8% of total production of this product in the Unified Energy System).

At the same time, it should be noted that the volume of the herbicide requirements of the member states of the Union in 2016 amounted to about 200 thousand tons (RF - 150 thousand tons, RB - 20-25 thousand tons, RK - 25 thousand tons).

According to the above, the use of dumping herbicides by the European manufacturers in the EAEU should result in a significant suppression and a subsequent decline in the production of this product in the Union, amid a noticeably growing import of goods from the dumping party, in our case herbicides from the EU. However, from the results of the investigation carried out by the Eurasian Economic Commission, it follows that: the share of imports from the EU on the Union market decreased (the volume of imports of European herbicides in 2016 amounted to about 63 thousand tons); the production of herbicides in the EAEU in 2016 increased by 28%, compared with 2015; the cost of herbicides produced in the member states of the Union increased by 72%; the profitability of the largest herbicide producers in the EAEU, including Russian companies JSC “Shchelkovo Agrokhim” and CJSC “August”, grew by 80%, in proportion to the price increase.

Also, in the light of the current situation on the herbicide market of the EAEU, it is necessary to emphasize the high importance of this product for the domestic crop sector, since the vast majority of agricultural crops can lose up to 50% of the yield from the negative effects of weeds.

In this regard, the use of high-quality antisunnel drugs in the required quantity, both general and selective, has a direct impact on the final yield indicators of the agricultural crop production sector, which is more than relevant for the Republic of Kazakhstan, a country with a truly agrarian orientation of agriculture. "In addition, the domestic production of herbicides in any of the member countries of the Union is currently not in a position to meet the real needs of farmers. There are plans to increase production capacity, but this is hampered by a number of factors, for which work is currently being carried out with the support of the Atameken and authorized state bodies of the Republic of Kazakhstan", - said Boris Tzoktoev, Managing Director of LLP Astana-Nan, which is a domestic producer of herbicides.

It should be noted that today Kazakhstan and Belarus are already opposing the introduction of an anti-dumping duty, since the loss of a source of subsidies in the form of "cheaper" but more effective European herbicides will inevitably entail a rise in the price of planted agricultural products and reduce its competitiveness both in the domestic market of Kazakhstan and on the development of Kazakhstan's export potential, the supply of crop products to third countries.

According to the report of the Eurasian Economic Commission on the preliminary results of the anti-dumping investigation regarding herbicides from the EU, the planned level of anti-dumping duty will vary between 27.5% and 52% and on average will equal 37.4% of the value of the goods. This will lead to a potential increase in the price of herbicides by at least 40%. "Today, domestic farmers, especially wheat producers working in the zone of risky farming, have faced so many problems that they do not allow them to adequately observe the necessary technological operations.

This resulted in low levels of mineral fertilization, compliance with crop rotation, and the timing and quality of plant protection measures from weeds, pests and diseases. In addition, the aforementioned difficulties in the work of the industry are accompanied by existing difficulties in the delivery of demanded Kazakhstani products to the markets of European countries. The "Grain Union of Kazakhstan" expresses the hope that the Government of Kazakhstan will be able to protect the interests of domestic agricultural producers within the framework of the EAEU, and in the future to propose balanced measures to support agricultural producers and producers (suppliers) of plant protection products", - the president of the ULE "Grain Union of Kazakhstan" Nurlan Ospanov said.

It is worth noting that according to the rules for the introduction of anti-dumping measures in the European Union, the measure to be introduced must meet the common interests of the countries of the European Union. Under the common interest of countries is understood the complex effect of duties on various market actors, such as domestic producers of products, users and consumers. This condition allows to minimize the negative consequences of the anti-dumping duty on the economy of the country, generally associated with a potential increase in prices. Given the above facts, the reasons for lobbying the Commission to introduce an anti-dumping duty on herbicides of European production, in contradiction with the interests of other members of the Union, remain unclear.