EU challenges Colombia’s compliance with WTO ruling on frozen fries spat

5 months ago 15

The European Union has filed a compliance request with the World Trade Organisation (WTO) regarding Colombian tariffs on imports of Belgian, German, and Dutch frozen fries that the European Commission has deemed discriminatory.

The Commission argues that Colombia has not complied with a 2022 WTO ruling on the trade spat, the EU executive wrote in a press release on 31 May.

The WTO panel issued a mixed decision in December 2022, supporting the EU’s claim that anti-dumping duties on frozen fries needed recalculating, but siding with Colombia on other points of the case.

Anti-dumping duties are taxes imposed by a government on foreign imports priced below their fair market value to protect local industries from unfair competition.

Despite Bogota’s claims of compliance with the WTO’s findings, the EU’s trade department (DG TRADE) found the recalculated duties “artificially created and/or inflated” using methodologies incompatible with those of the Geneva-based body.

In November 2018, Colombia imposed anti-dumping duties of 3% to 8% on frozen fries from Belgium, Germany and the Netherlands, affecting 85% of EU frozen fry exports to Colombia, valued at €19.3 million.

In 2016, exports from these countries to Colombia totalled €23 million.

This is not the first time the Commission has challenged anti-dumping duties on agricultural products at the WTO.

For example, the US imposed duties on Spanish ripe olives, which led to a 70% reduction of their North American exports. The Commission said the US has not complied with a 2021 WTO decision to phase out these duties.

Despite these measures, EU frozen fry exports have remained steady, even increasing in 2021 and 2022.

The Commission noted that imports from companies subject to duties were replaced by other EU exporters who are not facing anti-dumping tariffs, with Germany ceasing exports to Colombia altogether since 2022.

Brussels and Bogota should hold consultations within 15 days after the request for consultation. After that period, the EU can request the establishment of a WTO compliance panel.

[Edited by Angelo Di Mambro and Zoran Radosavljevic]