Colombia will impose anti-dumping duties on French fries from the Netherlands, Belgium and Germany. The local government started an investigation in November 2017. Romain Cools, general secretary of Belgapom and FVPhouse, reacts indignantly.
The Trade Commission of Colombia recently research done to the dumping of fries from Western European countries. The study concludes that there is a link between chip imports (at low prices) and the harm to the Colombian sector. The government has published a press release announcing the levies. According to Romain Cools, general secretary of Belgapom and FVPhouse, the levies will be introduced very quickly.
Ad valorem tax
An 'ad valorem tax' will be introduced. This means that the levy is based on the value of transactions completed. The Colombian agriculture minister is pleased with the levies. According to him, 74% of imported fries will now only arrive at prices that do not affect the national agricultural industry.
Cools is angry and says he is not alone: "This file is determined by flat politics and not by the content. We have clearly shown that it is unlawful. No distinction is made between the fries, while everyone knows that in practice There is a big difference in types. Despite the fact that we have shown that the procedures are not being conducted lawfully, nothing is being done."
- Romain Cools
By flat politics, Cools means that, in addition to the farmers' organization Fedepapa, a large North American processor is behind the charges. "This processor benefits from having levies imposed on its competitors. It is a matter of political customer loyalty with this potato processor, rather than actually protecting the domestic market."
WTO procedure
"We would now like to initiate proceedings through the World Trade Organization (WTO)," Cools continues. "We are sure that we would win this, but Europe is not yet cooperating with this. Such procedures have been initiated in the past in the United States (US), where they are less affected by European political correctness."
The biggest problem for Cools is that this is the third levy. "The file even describes that the tariffs have worked well in Brazil. A domino effect can occur. That is why a procedure at the WTO is so important. This can stop this effect."
Earlier on questions were already asked in the House of Representatives about the issue. MPs Helma Lodders and Bente Becker (VVD) wanted to know whether the approach and working method did not conflict with the rules of the World Trade Organization.
Increasing exports
According to Germán Augusto Palacio Vélez, president of Fedepapa, imports of frozen chips have increased in 4 years from 13.000 tons in 2013 to an estimated 45.000 tons in 2017. That would be 10% of domestic potato production.