In New Zealand, potato growers are concerned about their livelihoods due to sales difficulties and low prices.
They blame large-scale imports of French fries from the European Union because they cannot be sold there due to Corona’s requirements in the supply sector and they are exported at dumping prices.
“There are indications that European french fries are being dumped in the New Zealand market,” said Potatoes New Zealand managing director of industry.
Chris Claridge, recently to National Media.
This practice threatens local businesses and must be stopped. New Zealand supermarkets sell imported packages of frozen chips for about half the price of local suppliers. Most of the inexpensive goods come from Belgium or Holland. A therapist from Europe admitted to dumping because it had surpluses and said he could do more, Claridge reported.
The association had already resorted to the Ministry of Economic Affairs last year with documents and evidence, and then opened an investigation into the dumping offers at the end of 2020.
French fries from Europe.
20 percent decrease in exports
The initial report is expected to be published in April. “the threat
Because our industry is real, it will continue and we are convinced of the necessity of temporary protective tariffs, ”emphasized the Director General. Because of this situation, local processors, who usually enter into contracts with local producers, are hardly interested in entering into new contracts. In addition, there is a problem that Europeans with their cheap offers are also hurting
Establishing foreign markets; New Zealand exports have already decreased by 20%.
Claridge stressed that New Zealand farmers have no problem with competition, “but if this competition does not reflect the full cost of making the product, then it must be unfair competition.” Europeans sold goods for less than the cost of production. New Zealand Free Trade. However, this does not mean that there are no rules. Preventive definitions
In the event of dumping, the World Trade Organization (WTO) also allows a mechanism to protect domestic industry.