Millers association complains about Turkey flour dumping

THE Philippine Association of Flour Millers on Friday told the Senate committee on agriculture and food that Turkey continues to dump flour in the Philippines despite the provisional dumping duty imposed by the Department of Agriculture in April This year.

The 2.28-percent to 39.26-percent provisional dumping duty has no effect at all due to a loophole allowed by the DA for seven Turkish flour mills that continue to export flour to the Philippines with no dumping duty, PAFMIL executive director Ric M. Pinca told the Senate Committee on Agriculture and Food led by Senator Cynthia Villar.

Pinca said Turkey is dumping flour in the Philippines in violation of World Trade Organization rules.

“Dumping occurs when a country exports a commodity at prices lower than its domestic prices. When a country exports products at dumping prices, it is engaged in unfair trade. Thus we are up against a country engaged in unfair trade,” Pinca said.

In 2010 the average export price of Turkish flour was $276 per metric ton while their domestic price was $600 per metric ton.

In 2011 the export price was at an average of $388 per metric ton against the Turkish domestic price of $600 per metric ton. Last year it was $340 against the domestic price of $470 per metric ton.

“The numbers speak for themselves. Turkey is dumping flour in the Philippines,” Pinca said.

“It is an unfair trade practice. PAFMIL’s anti-dumping petition is our reply to Turkey’s unfair trade activity.”

Turkish flour exports to the Philippines grew by 16 percent in 2011 and to 75 percent in 2012.

In contrast, the local flour industry grew by only 1 to 2 percent during the same periods.

“If this trend continues, there will no longer be a flour milling industry in the Philippines in just a few years and should this happen, the entire country will be left at the mercy of Turkey for our flour supply,” Pinca said.

“One only needs to look at the trend to realize the danger to our food security that the threat of unimpeded Turkish flour entry brings.”

Source: Manila Standard Today News