Anti-Dumping in South America, does it serve its purpose?1 year ago
Following on the Brazil protectionist measures imposed on Belgian, Dutch, French and German imports in the beginning of 2017, Colombian authorities recently announced to set import tariffs on Dutch and Belgian French fry imports. Especially for Dutch and Belgian players South America is a major export market.
Brazilian tariffs significantly weakened the export position of European players, at least that is what one might expect. However, it turns out that the total export volume of the “affected” players did no change significantly, only the distribution of goods did. By choosing to export from other locations, these internationally active players merely changed their products’ source of origin.
So what happened?
- Dutch exports did suffer severely from the Brazilian import duties in 2017;
- Belgian export held up and even increased total exports to Brazil in 2017, because these entities negotiated significantly lower tariffs;
- The void left by lower Dutch exports, has been filled twofold:
- Higher exports from other locations owned by the same companies (Poland, France, the UK, USA, Canada, and possibly even Belgium)
- An increase in Turkish product shipped to Brazil – the question could be raised whether this will be temporal of structural
In total exports from the (excl. Turkey) above countries amount to an additional 25,500 tonnes from plants outside of the Netherlands, while total Dutch exports declined with 27,500 tonnes. This development seems to have tempered the growth of these companies within the Brazilian market, however the question remains, does the Brazilian anti-dumping tax fully serve its purpose the way it is structured right now? Will we see the same pattern for Colombia?