The Colombian government is investigating possible dumping of chips and other frozen potato products on the local market. Producers from the Netherlands, Belgium and Germany are suspected of this. What consequences does this have for exports?
Fedepapa, the Colombian trade association for potato producers, filed an anti-dumping complaint with the Colombian ministerie of Trade, Industry and Tourism. Potato processors from the Netherlands, Belgium and Germany are suspected of dumping frozen fries and other potato products, falling under the trade code HS 2004.10, on the Colombian market.
Investigate consequences
The ministry has not yet imposed an anti-dumping tax against the producers. The Foreign Affairs Directorate is investigating whether dumping has occurred and what impact this has had on local industry and sales. Products preserved with vinegar or acetic acid are not included in the study.
In February this year, Brazil introduced an anti-dumping tax on French fries. In addition to the Benelux and Germany, French producers were also charged a tax. This country is not mentioned now. Dutch producers in particular have been heavily taxed by Brazil, which is hurting exports. Belgium actually benefits from this. Their tax is at a much lower level.
Colombia growth market
Between August 2016 and July 2017, the Netherlands exported 7.561 tons of frozen fries to Colombia, according to statistics from the Global Trade Atlas. An increase of 17% compared to the 12 months before. Of the non-EU countries, Colombia is not a very large market for the EU-5. In the 12 months between August 2016 and July 2017, 34.266 tonnes of product were shipped. Colombian exports have a total value of €23,61 million.
Belgium is the largest supplier of fries, with 24.732 tons between August 2016 and July 2017. Germany is the smallest player, with 1.973 tons of product. The Netherlands is in between, but shows the greatest growth. Germany actually sold 20% less product compared to the 12 months before.