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Anti-Dumping investigation launched

The Anti-Dumping Commission has reopened a case against two Italian tinned tomato exporters.

Following an application lodged by SPC Ardmona Operations Limited, an investigation has been initiated with respect to tomatoes exported to Australia from Italy by Feger di Gerardo Ferraioli A.p.A. and La Doria S.p.A.

The Anti-Dumping Commission defines dumping as when goods exported to Australia are priced lower than their “normal value” which is usually the comparable price in the ordinary course of trade in the exporter's domestic market. “Normal value” may also be determined using comparable prices to a third country or the cost of production plus selling, general and administrative expenses and profit.

Dumping is not prohibited under the WTO international agreement, but anti-dumping duties may be imposed when dumping causes, or threatens to cause, material injury to an Australian industry.

“This investigation is welcome news for Australia’s vegetable and potato industries which have struggled to compete against cheap processed foreign produce,” said AUSVEG spokesperson Andrew White.

“As the nation’s agricultural sector continues to shift towards a focus on free markets and international trade, it has become particularly important that Australian vegetable and potato growers and local processors are able to compete on an equal footing with their international counterparts,” White said.

The new investigation comes after dumping duties were imposed on 103 Italian tomato exporters last year following Anti-Dumping Commission investigations.

“In previous investigations into canned tomatoes, 103 of 105 canned tomato exporters from Italy were found to be illegally dumping their goods on our shores and duties were imposed. It is positive news that the remaining two exporters are now being investigated,” White said.

“We are hopeful that this new investigation will further discourage foreign businesses that are exporting to Australia from dumping cheap produce here and hurting local growers and processors.”

“The effects of illegal dumping can reach far beyond the tomato industry and if left unchecked they could set an unwanted precedent for international companies exporting to Australia that could have flow-on consequences for the Australian vegetable and potato industries.”

In its submission to the Anti-Dumping Commission, SPC estimated that the processed tomato industry in Italy received an estimated AUD$1.2 billion in subsidies from 2010 to 2014 under Europe’s Common Agricultural Policy (CAP).

The new Anti-Dumping Commission investigations also follow the announcement of new measures late last year aimed at making it harder for foreign companies to dump cheap produce on our shores.

 

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