Resolution adopted

Brazil introduces anti-dumping tax on French fries

16 February 2017 - Clarisse van der Woude

On Wednesday, the Brazilian government decided to impose an anti-dumping duty on imported French fries and potato products from the Netherlands, Belgium, Germany and France.

This makes the fears of the potato processing industry and growers a reality. In the resolution There is still no information about the percentages that are imposed per supplier and for which period they apply. The fact is that Brazil has taken the advice of the DECOM investigation.

The Association for the Potato Processing Industry (VAVI) is disappointed with the decision. 'The efforts made on all kinds of political levels, both national and European, have had no effect. Very unfortunate," says general secretary Hylke Brunt. He then discusses, among other things, the requests to the Ministry of Foreign Affairs to take action and the government's correspondence with Brazil in which the concerns about the measures were shared. 

United States ready to take European place in Brazil

The Belgians have also put the problem as high as possible on the agenda through various routes. Questions have been asked in the European Parliament and recently VVD Member of Parliament Helma Lodders Parliamentary questions asked. 'Because it certainly rattles, but nothing has been done about it in Brazil.'

Brazil's unilateral imposition of the decision is completely in violation of WTO rules. For example, it prescribes that such a measure may only be instituted after five years of investigation, but in this case that investigation lasted three years. 'Numbers are put next to each other that have nothing to do with each other. All in all, it tends towards market protectionism that more and more countries are turning to. It is possible that even the Mercosur deal with the EU will run through this.'

However, Brunt also wonders whether politics has exercised its influence too late, insufficiently or with insufficient urgency. 'Has the politicians remained too diplomatic and perhaps they should have smashed their fists more on the table?'
The secretary does not yet know what the decision will mean exactly. 'It is unclear when the resolution will take effect, whether it will be final or whether parliament still has to have a political say about it, and also what the timing and routing will look like. As soon as we know more about this, we can consider the next steps.'

In any case, it is certain that the United States is eager to take the Western European place in Brazil, because the Americans are not confronted with taxes.

 

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