TRADE TARIFFS: European nations ‘dumping’ frozen potato chips on SA market, domestic producers complain

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European countries with a glut of potato crops have been accused of ‘dumping’ supplies of frozen chips in South Africa, in effect undercutting local producers. However, temporary anti-dumping duties levied against Belgium (23.06%), the Netherlands ...

If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product.

In order to do that, the government has to be able to show that dumping is taking place, calculate the extent of dumping , and show that the dumping is causing injury, or threatening to do so. The 181% tariff increase on German producers meant, for example, that a 2.5kg pack of frozen French fries that used to cost R45 has rocketed to as much as R130.Fred Hume, managing director of Hume International, says the high tariffs imposed against Agrofrost from Germany, for example, have cut the German pipeline.The frozen chips supply in question is imported and then sold on to restaurants and hotels, rather than local supermarkets.

Bruce Sanday, chief executive of Nature’s Garden, says the anti-dumping tariffs were first introduced as a temporary measure. And the government missed the boat on renewing the tariffs. “The Commission is ensuring that all due processes are followed to ensure the completion of the investigation, and thereafter the Minister’s decision will follow,” he says.“Shipping costs and the exchange rate means that we are competitively priced against imported products. The problem is that, in Europe, the volumes are much higher. One international plant could probably service the entire South African market with just half its production numbers,” he says.

 

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