Everything wrong with anti-dump fries research Brazil

The investigation by the Department of Trade Remedies (DECOM), part of the Brazilian Ministry of Industry, Trade and Services, is said to be rattling on all sides. What's up with that?
'After the Brazilian company Bem Brasil Alimentados complained about French fries imports from the Netherlands, Belgium, Germany and France, the government opened an investigation. Through our Brazilian advisor, who analyzed the way in which Decom conducted research, we now know that it is a particularly poor study. I also wonder why Bem Brasil - which only serves 30 percent of the market - offers such a counterbalance to imports. What they produce is of a completely different quality and concerns a different type of products. There is demand for what we, the Europeans and Americans, produce.' 

You talk about bad research. What's wrong with it?
'That's the second point that stands out. Throughout the entire study, no connection was found between imports of European products and any loss of sales or turnover at Bem Brasil. There are other reasons for this. Issues related to disappointing yields, inefficiencies in production, etc. These are simply other causes that have affected the company. In addition, prices are compared side by side, which I can only conclude is that it is comparing apples and oranges. Completely independent of specialties and qualities of potato products and also in different periods. That makes the comparison unfair in advance. In short: the research is incomplete and seriously flawed.'

What do you fear?
'What worries us is that the Decom investigation contains a lot of uncertainty regarding the process and contains many technical flaws and imperfections. The conclusions and recommendations they make to the Brazilian government will therefore be incorrect. If we are not careful, this will give the Brazilian government a completely wrong representation of the facts.' 

Brazil ranks 9th in terms of export value among buyers of Dutch potato products worldwide. If Brazil actually imposes anti-dumping measures against chip imports, exports will be seriously at risk. Or is there more at stake?
'It also affects the EU as a sector. There is a lot of exchange of agricultural products between Brazil and the Netherlands. I wonder what the EU's response will be. There is a common interest. It concerns jobs in both regions, growers who have invested and you can be sure that if the boycott comes, the consumer in Brazil, who is already not well off, will become a victim. Our products become unaffordable with a tax. The rate is already considerable, at 14 percent. If that increases even further, it will have far-reaching consequences.'

What needs to be done to prevent a boycott? 
'Trade Minister Ploumen could bring the issue to the attention of her Brazilian counterpart in a letter. It must be made clear that there are major concerns about this careless and inadequate research for a large sector such as this where there is a huge potential for error and misinterpretation. These also conflict with WTO agreements. I also expect the Dutch, Belgian and German MEPs to draw attention to this point from the European Commission. The Belgian government is very active in this regard and I hope that the Dutch government will now also draw attention to it. These are not just the interests of the industry, but of the entire potato chain.'  

Can the European Potato Processors Association (EUPPA) help in this regard?
'The EUPPA is very active. I am chairman of the trade commission and we have been exercising our influence for some time. Everyone is sounding the alarm at their own level, but the European Commission is taking a very cautious approach. I think it has to do with the fact that the relevant department sometimes also has to take action against parties that disrupt the market in the EU. However, it is completely unnecessary for them to moderate themselves somewhat, because we have a defensible case.' 

Source: CBS