Colombia is determined to ban Dutch frozen chips and is therefore appealing a decision by the World Trade Organization (WTO). It is the next chapter in a long-drawn-out potato war between Colombia and the Dutch fries makers.
According to Colombia, European French fries producers offer their products at bargain prices. As a result, the Colombian potato processing industry would run into problems and the market would be disrupted: local potato growers would no longer be able to sell their product, because the Colombian potato processors no longer have a chance on the market.
To remedy this, European fries producers such as the Dutch Aviko and FarmFrites have to pay import duties of up to 8 percent in Colombia. According to the Colombian government, this is the only way to rectify this unfair competition. German and Belgian French fries producers are also victims of the import tax.
Protest
After protest from the European Union, the WTO ruled that the imposed import duties were unjustified, after which Colombia itself announced that it would appeal. The Dutch Association for the Potato Processing Industry (VAVI), which represents producers such as FarmFrites, McCain and Aviko, adheres to the first statement. “Colombia has not been vindicated. The WTO says we are not doing anything illegal,” said chairman Andries Middag.
The Netherlands is the largest exporter of potatoes within the European Union, but figures from the Central Bureau of Statistics show that only a small part of the export goes to Colombia. Afternoon: ,,Colombia may not be a very big market, but we’re not doing anything wrong. If we are not careful, import duties will soon apply not only to potatoes, but also to other products. The Netherlands is a trading country after all.” Earlier, the governments of Brazil and South Africa also imposed import duties on Dutch French fries producers.
Efficient
According to Middag, the Netherlands works extremely efficiently in the French fries industry, which means that chips can be produced here for a low price. ,,The cooperation in the chain is good, and we produce a lot, which results in economies of scale. Moreover, we use a lot of the potato: we only throw away 1.5 percent. We are good at what we do.”
Afternoon does not feel sorry for the Colombian industry. “Competition can help to become better and more efficient: it can be a good incentive for other countries to become more efficient as well. Moreover, this is the result of free trade. You have to do the things you are good at. We don’t grow coffee either.
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