The issue vs Turkish flour is dumping – PAFMIL

MANILA, Philippines - The case against Turkish flour export to the Philippines is dumping and this is why the Department of Agriculture has imposed a provisional anti-dumping duty of 2.28 percent — 39.26 percent after an 11-month study of the petition filed by the Philippine Association of Flour Millers (PAFMIL), according to PAFMIL executive director Ric M. Pinca.

To raise the matter of smuggling is incorrect and would only serve to muddle the case which is now up for final determination by the Tariff Commission, Pinca said.

PAFMIL claims that Turkey is dumping flour to the Philippines in violation of international trade laws. The World Trade Organization defines “dumping” as the “export of products at prices lower than the domestic prices of these products at the exporting country”.

DA issued the order imposing the anti-dumping duty on Turkish flour after an “affirmative finding of dumping on the petition filed by PAFMIL.

According to PAFMIL, Turkish flour export prices to the Philippines and other ASEAN countries were lower than the domestic prices of Turkish flour.

PAFMIL records show that the domestic price of flour in Turkey in 2010 was $600 per metric ton. However, its export prices to the Philippines and other ASEAN countries were lower by 47.2 percent to 58.3 percent lower.

Turkish export price to the Philippines at that time was only $276 per metric ton (pmt) or 54 percent lower than Turkish domestic price.

To Indonesia, the export price was $284 pmt or 52.7 percent lower. To Malaysia, the export price was only $250 pmt, or 58.3 percent lower.

Indonesia imposed a 20 percent safeguard duty against Turkish flour in 2012 to protect its domestic flour industry.

Pinca said PAFMIL welcomes fair competition and expects to compete with ASEAN countries in the local flour market with the ASEAN Integration in 2015. Turkey, however, is engaging in dumping, which is unfair competition and the government’s imposition of the dumping duty is only a means to level the playing field, he added.