The lobby in New Zealand for an import ban on European chips is still ongoing. Potatoes New Zealand has submitted an application to the government for anti-dumping duties on frozen chips from Belgium and the Netherlands and is substantiating the 'seriousness' of the situation with figures.
The fear that cheap frozen chips from Europe would disrupt the internal market in New Zealand emerged at the end of May to light. An issue that also plays out in Australia. Both countries are afraid that European chip surpluses, which have arisen as a result of the corona crisis, will come their way in abundance and at low prices. Import restrictions should put a stop to this.
High dumping margins
Potatoes New Zealand (PNZ) submitted an application to the government at the beginning of July. The trade association for the New Zealand potato sector states that current dumping margins are between 95% and 151%. These percentages indicate the extent to which the export price is lower than the normal value. In order to establish that there is indeed dumping, the dumping margin must be greater than 2%. The margins mentioned by PNZ are therefore far above the threshold value.
PNZ expects dumping margins to increase further, leading to price declines for the New Zealand potato industry of 18% to 38%. According to the organization, this would be disastrous for growers and processors in the country. If there are no import restrictions and/or excise duties on European fries, the 5 chip factories would be forced to reduce their production, which will have direct consequences for the demand for potatoes from New Zealand growers and the employment offered by the sector.
Research takes months
According to PNZ, the analysis makes it clear that the threat is real and that an anti-dumping investigation is justified. If the government agrees and starts an investigation, it will take about 9 months before it actually comes up with import restrictions. The question, however, is how useful the lobby is. That is why consumers are now being urged to buy local potatoes and fries.
The aversion to European fries in New Zealand is specifically aimed at the Netherlands and Belgium. It is continually emphasized that growers here receive government support, which would create unfair competition. That is the support measure, which is now also the case has taken shape in Belgium, only applies to free potatoes and the fact that there are strict conditions attached to it is not included in the reporting.
No major export markets
By the way, New Zealand and Australia are normally not major buyers of European fries. For example, Belgium, the largest French fries exporter, Australia and New Zealand rank 27 and 71 respectively as export destinations. In New Zealand, 85% of French fries consumption normally comes from own production.
It is still unclear how far lobbying in Australia has progressed at this time. Interest organization AUSVEG is taking the lead in this. That there is also unrest about the situation in Australia was evident from the demonstraties held in early June at McCain and Simplot plants.