The Brazilian import figures for French fries show a small decrease in March. Still, the anti-dumping tax has little noticeable effect on European French fries producers. Belgium is actually increasing the export of frozen potato products to Brazil. There is, however, a noticeable shift in suppliers.
Western European chip producers received a dubious anti-dumping tax in mid-February imposed. There is still debate as to whether it was justified. In any case, the fact is that potato processors almost immediately had to deal with imposed levies. The Brazilian government wants to protect its own market and domestic French fries production.
5 percent less imports
The imposed prices vary per chip manufacturer percentages ranges from 0 to 133 percent. Belgian processors fared relatively well. This is also noticeable in Brazil's most recent import figures. Dutch factories have to deal with percentages of up to 97 percent and France even with 133 percent.
Imports of fries and other frozen potato products (HS 200410) amounted to 32.439 tons in March, the first full month since introduction. That is 5 percent less than in the same month one year ago. It should be noted that in March 2016 the second largest volume ever was imported. The import from March 2017 comes in 3rd place. The year-on-year import is still almost 15 percent higher. The product price fell by 14 percent on average. The lowest level since February 2015.
The Netherlands suffers losses. Belgium wins
Argentina accounts for the lion's share of imports in March, but does record a decline of 17 percent. Over a period of 12 months, the country will record an increase of 10 percent. The Dutch share fell by more than 30 percent in March. A direct consequence of the anti-dumping tax. Dutch fries fell 11 percent in price.
Belgian processors have outpaced their Dutch and French competitors. They increased their exports to Brazil by 7 percent in March, to 8.058 tons. That level is 1.400 tonnes above the Dutch share. This puts our southern neighbors in 2nd place on the import list. Over a period of 12 months, the volume of Belgian fries increased by 7 percent.
Germany in the plus
Even before the introduction of the anti-dumping tax, there were fears in Europe about the arrival of American factories on the Brazilian market. They do not have to deal with a tax. However, exports from the US have remained stable. Despite tax percentages of up to 55 percent, Germany has also managed to expand its position. In 12 months, exports increased by two-thirds. The month of March was good for a volume increase of 36 percent.
April shows a different picture
The April figures are expected to show a bigger decline. Some of the fries, which ended up on Brazilian port quays in March, were shipped before the tax was introduced in February. It is not the Americans, but especially the Belgians who benefit fully.