These past two weeks have seen the Ministry for Economic Services present to the FOI for discussion two separate levy dismantling programmes.

The FOI however is insisting on a different programme for levy removal based on what the federation had presented to Government in respect of each of the various sectors that included: pigmeat, eggs and poultry meat, milk, pasta, bakery, confectionery, tomato, edible oils and margarines, animal feeds, flour milling, tobacco, beverages, beer and wine.

In a letter sent last week to the Ministers of Agriculture, Economic Services and Foreign Affairs, the federation stressed the importance of technical and financial support, especially in view of the fact that the European Union has not granted tariff-free market access to the same products listed in the schedules.

Malta's exporters who do manage to sell to the EU markets are still faced by levies. They are trying to gain market access with low profit margins. To make matters worse, EU manufacturers currently exporting to Malta obtain export subsidies and thus can afford to lower their product prices in the Maltese market and compete unfairly.

The FOI also stressed that Government should consider the structural problems caused by Malta's insularity and double freight costs on exports, particularly in view of port handling and transport costs.

The importance of any removal of levies taking place after accession into the EU, was also stressed in the FOI letter. The federation believes that the timeframe being proposed by Government for the removal of levies is inadequate and unrealistic with the timeframes required for restructuring enterprises, for allowing gradual market entry into the EU countries, and for any brand introduction exercise in the EU single market.

Those points are further aggravated by the economies of scale and massive branding strengths of EU competition that is penetrating the Maltese market very forcefully.