Opportunities for French fries export in Brazil: We are in a bad position

More than 50 million euros is at stake. That is what the Netherlands is missing out on when Brazil introduces anti-dumping measures against French fries. Reason for the VVD to ask parliamentary questions.

'Sometimes you have to give the sector itself the opportunity to tackle issues, but this problem is now so acute that we have started getting involved', says Member of Parliament Helma Lodders. Thanks to the initiative memorandum 'Nederland Pieperland', Lodders has many contacts with the potato sector. As a result, she had known for some time that Brazil was investigating the possibilities of an anti-dumping tax on imported chips after local producer Bem Brasil Alimentados accused the Netherlands, Belgium, France and Germany of dumping frozen potato products on the Brazilian market at bargain prices.

On Wednesday, the Brazilian DECOM (Department of Trade Remedies) will provide advice to the government after an investigation. The concept of that would be disturbing. Reason for the Association for the Potato Processing Industry (VAVI) to inform Lodders. 'The situation is now really so dire that we have asked parliamentary questions', she says.

Lodders wants to know from the Minister for Foreign Trade and Development Cooperation, Lilianne Ploumen, and the State Secretary for Economic Affairs, Martijn van Dam, whether they are aware of the issue and the consequences for the sector.

'If the Brazilian government adopts the advice, the consequences will be enormous. Both for the potato processors and for the growers. That is why something has to be done about it at the highest level.' In the worst case, there will be a levy that will make Dutch products about 40 percent more expensive.

All the more so because DECOM's investigation would rattle on all sides. "In any case, we must ensure that the Brazilians make a decision based on the correct information and facts." The Member of Parliament also wants to know how the Minister and State Secretary have stood up for Dutch interests in recent times. “The issue is not new to them. For me it's important to know what they've already done about it. How does DECOM's information come about and what steps can they take since the consequences are so great.'

Ploumen and Van Dam have three weeks to answer the questions, with an extension of up to six weeks. Lodders, however, hopes that this period will not last too long. 'Given the urgency, I hope that they are prepared to answer our questions before the election recess (ed.: 24 February to 20 March). I would like to know in the short term whether it is necessary to take further steps.'

Brazil is an important buyer for the Netherlands. The South American country imported a total of 2016 percent more frozen chips and potato specialties from February 2017 to January 16.5 than in the previous 12 months. That's a new record. Most of it came from Argentina, followed by the Netherlands (almost 85.000 tons) and Belgium. Germany is still far below this in absolute volumes, but has made rapid progress in that period, while the United States has lost market share.

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