Wednesday, October 16, 2019

How the French fries became the target of commercial battle between Colombia and Belgium

The french fries have become a source of dispute between Colombia and Belgium that many are describing as a "trade war". Belgium said on Friday (11) that it has a "real problem" with Colombia, whose government applies import tariffs of up to 8% to the product. The South American country also imports the potatoes from Germany and Holland. Colombia argues that tariffs — in force since November 2018 and confirmed again last week — are an "anti-dumping" solution. In other words, they would serve as a strategy to protect the price of the local product and ensure that the imported potatoes are sold at a "normal" price. Belgian Foreign Minister Didier Reynders said he spoke with his Colombian colleague, Carlos Holmes Trujillo, but there was no "real effect". Meanwhile, the European Union (EU) is preparing to file an official complaint against Colombia with the World Trade Organisation (WTO) for a measure which, according to European Commissioner for Trade, Cecilia Malmstrom, is "completely Unjustified and harmful to European companies ". Malmstrom said on Monday (14), in a press conference, that will act "as fast as possible" and also recalled that the problem is not new: the dispute between Colombia and Belgium by the fries already lasts two years, he said. "We have made several efforts seeking an understanding with Colombia over the past two years, but we have not received a satisfactory response and that is why we have decided to take this measure to protect our industry," Malmstrom said. A market that moves millions The french fries, especially accompanied by Andalusian sauce, are a typical Belgian dish, but not just that. They are also considered a national symbol, along with chocolate and artisan beer. Colombia, like many other countries outside and within Latin America, imports potatoes from the European country. In fact, Colombia is not the first country to impose tariffs on Belgian potatoes: Brazil and South Africa have done the same thing. According to the deputy Minister of Foreign Trade of Colombia, Laura Valdivieso, the low prices of the product are damaging the national production of the tuber and creating trade distortions. According to a report by the AFP news agency, the export of potatoes from Belgium has grown significantly in the last decades: from 500 tonnes in 1990 to 5.1 million tons in 2018. They were sold to 150 countries, according to data from Belgapom, a Belgian organization that defends the interests of potato merchants in the country. And a report from the Euractiv channel points out that the Belgian sector of processed potatoes has increased in recent years to become the largest in the world. The entity says that more than 90% of the production of chips are destined for export — a third goes to countries outside Europe. "If this [trade dispute] continues, this could affect our industry in the long run and have very serious consequences," said Romain Cools, spokesman for Belgapom, to the AFP agency. Cools believes that tariff processes are used?? " Unduly as a form of protectionism. " "Colombia's fares are unfair," Cools says. The Department of International Trade of the European Union has ensured through Twitter that it has tried since August 2017 to "support the access of European fries to the Colombian market". That year, the Colombian government launched a "meticulous investigation" into the prices of French fries that the country imports. If Belgium does not reach an agreement in the WTO, a discussion panel may be established. In turn, the Minister of Commerce, Industry and Tourism of Colombia, José Manuel Restrepo, said that "the first step will be to negotiate a friendly solution". The European Union and Colombia have a provisional free trade agreement for five years.
G1 - 15/10/2019 News Item translated automatically
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