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Local potato producers feel vindicated by launching a formal investigation into the dumping of cheap frozen potato chips from Europe, an industry group claims.
The investigation by the Ministry of Business, Innovation and Employment (MBIE) came after local potato growers raised concerns about the threat of surplus frozen potato chips in Belgium and the Netherlands flooding the market, putting at risk hundreds of local industry jobs.
Potatoes NZ CEO Chris Claridge said there was a more than 50 percent increase in exports from Belgium and the Netherlands this year compared to last year.
Restrictions at international borders due to Covid-19 had lowered demand from European producers and made countries that had contained the virus, such as New Zealand and Australia, a target for their surplus production, he said.
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UNSPLASH
Europe had an excess of 2.6 million tonnes of potatoes due to the impacts of new closures.
The industry submitted a request to MBIE requesting anti-dumping duties be imposed on frozen potato chips and slices from European countries in September.
In reviewing the application, MBIE noted that in the first six months of this year, Belgium and the Netherlands combined had exported 2,076 tons of frozen and sliced potato chips, representing more than half of their total annual exports last year. 4040 tons.
“Potatoes NZ has provided sufficient evidence that the average prices of the allegedly dumped frozen potato chips and slices imported from Belgium and the Netherlands have undercut the average selling prices of the New Zealand industry over some period under review, and that it is prices are likely to remain low, ”MBIE said in its initial report.
Potatoes NZ CEO Chris Claridge says that this year there was a more than 50 percent increase in exports from Belgium and the Netherlands compared to last year.
“The forecast also shows that the New Zealand industry will experience depression and price suppression in the next 12 months.”
Claridge said the industry expected the government to take anti-dumping action against European imports.
Without government intervention, the impact of dumping would lead to producers leaving the industry, he said.
Christopher Furlong / Getty Images
Potato growers fear imported potato chips are undermining New Zealand’s industry.
While the investigation was being conducted, Claridge said, Belgian and Dutch companies would be aware that their actions could violate international trade rules and could result in retrospective tariffs if the MBIE investigation found that cheap frozen potato chips were being dumped in New Zealand by European countries.
“Importers have been involved in predatory activities,” Claridge said.
“If we can’t compete with imported frozen potato chips, which are being poured into our market, it means there is no industry left. All your fries are imported.
“We believe in free trade, but that doesn’t mean there are no rules. This investigation follows the rules of the World Trade Organization. “
MBIE has been contacted for comment.
