Federation Will Scrap the Rule on Mandatory Placement of Domestic Products in Stores

An end to the rule about mandatory minimum of 40 percent of domestic products on the shelves in retail stores, once the Federation entity amends its law on internal trade, will not significantly reduce the placement of domestic products in stores because the rule wasn’t strictly followed in the first place, said the entity’s Chamber of Commerce. The Chamber said it was one of the negative effects of the EU accession process, as the rule isn’t compliant with the Union’s trade policies. However, the positive effects of joining the EU market should annul the negative effects of ending the measures of domestic product protection.

The Chamber said that the 40% rule was not followed for objective and subjective reasons. The objective reasons include the lack of domestic products and an insufficient variety range to meet the 40% quota. The subjective reasons include the decision of big retail chains to ignore the rule, partly because of the objective reasons and partly because the inspection authorities failed to enforce the rule with repressive measures. Fines for not following the rule were lower than the profits made by violating the rule.

The Chamber said that awareness campaigns could persuade the consumers to buy more domestic products. The campaigns should be aggressive and lasting to produce any effect, which would require substantial marketing budgets that the domestic producers do not have. Therefore, the government’s help to promote domestic products would be of great importance.

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