June 8 (SeeNews) - Romania's parliament approved on Wednesday a law under which at least 51% of short food supply chain products such as meat, vegetables, fruits, eggs, dairy products and bread sold in supermarkets should come from local producers.
The law was adopted unanimously, data published on parliament's website showed.
Traders with an annual turnover of up to 2 million euro ($2.2 million) are exempt from the law.
Prior to the vote the Romanian big retail chains association, AMRCR, said the new law would have an adverse impact on their financial operations and ultimately fuel inflation.
"The law will have a few negative effects on financial plans: higher commodity prices for Romanian products, consumer migration to a non-taxed market and cancellation of the beneficial effects of reduced VAT on food products. This will inevitably lead to a rising in inflation," AMRCR said in a press release.
Commenting on the issue in a press release, the country's anti-trust regulator said that the new legislation will not work because of the small number of domestic producers.
To take effect, the law should be approved by Romania's president Klaus Iohannis.
($=0.8794 euro)