US Group backs tariff on Turkish flour

MANILA, Philippines - The US Wheat Associates (USW) supports the Philippine government’s decision to impose provisional duty on flour imports from Turkey citing that such creates a level playing field.

In a statement, the USW said it is pleased the Philippine government has decided to provide relief to flour millers in the form of a provisional anti-dumping duty on Turkish flour imports.

“The government’s decision sends a clear signal that flour millers in the Philippines, employing Philippine workers, should be able to operate in an open and fair trade environment,” the group said.

USW which works with American wheat farmers with millers and baking associations in the Philippines, supports competitive, open and fair trade environments.

It noted that Turkey’s highly protected wheat and flour market and complex inward processing scheme has created disruptive incentives for the Turkish milling industry to dump flour in export markets.

“The Philippine government was correct in investigating PAFMIL’s (Philippine Association of Flour Millers, Inc.) claim against Turkish flour dumping. It also correctly found strong justification to protect its flour milling industry. As a result, every stakeholder in this issue may now move forward together in the spirit of fair competition,” the group said.

Last week, the Department of Agriculture (DA) issued an order imposing a provisional duty of 35 percent on hard flour used for making bread, 39.26 percent on biscuit bread, and 35.21 percent on soft flour used for pastries and cookies, on top of the seven percent regular import duty.

The DA order was issued based on the result of its preliminary investigation on a petition filed by the PAFMIL.

The PAFMIL claimed in its petition the duty on flour imports should be raised citing that Turkish flour millers are bringing their flour here at dumping prices.

Dumping takes place when a country exports a commodity at prices lower than its domestic prices.

The provisional import duties would be in effect for four months while the Tariff Commission conducts a formal investigation to determine whether such should be in place permanently.

The Tariff Commission is set to hold a preliminary conference for the formal investigation on May 2.