Turkish threats of retaliatory tariffs is uncalled for – PAFMIL

MANILA, Philippines - The Turkish threat of imposing “retaliatory tariffs” should the Philippines continue imposing the anti-dumping tariff on Turkish flour is uncalled for and has no place in a business community that observes rules that govern trade and promote international business relations, according to Ric M. Pinca, Executive Director of the Philipppine Association of Flour Millers (PAFMIL).

Pinca was referring to a a news story quoting Turkish flour spokesman Yuksel Tezcan saying Turkey “ will be raising tariffs on some Philippine products if it (Philippines) will continue to intimidate us such as the anti dumping case filed against our flour exporters”.

Pinca said Philippine tariff officials should not pay any attention to this threat at all as tariff rates are governed by international agreements and World Trade Organization (WTO) rules; and no country can unilaterally impose tariffs without going through a process governed by strict rules and procedures.

The Philippines imposed a provisional anti dumping duty on Turkish flour after the Department of Agriculture found evidence of dumping against Turkish millers. DA imposed a provisional dumping duty on Turkish flour ranging from 2.28 percent to 39.26 percent.

The Tariff Commission which is tasked to study the anti dumping petition has until the end of September to complete its investigation and decide whether or not to impose the dumping duty permanently, revise it or remove it altogether.

Dumping occurs when a country exports a commodity at prices lower than its domestic prices. The WTO considers dumping an unfair trade and allows importing countries to impose anti dumping duty on such products.

PAFMIL said that Turkish domestic flour price in 2010and 2011 was $600, yet its export prices to the Philippines was only $276 and $388 per metric ton respectively. In  2012, Turkish domestic price was $470 per metric ton yet its export price to Manila was only $348 per metric ton.

These figures show that Turkey was dumping flour to the Philippines. The anti dumping duty is our response to this unfair trade practice by Turkey, Pinca explained.

According to Pinca, Turkey is not in any position to invoke fair trade because it is the one engaged in unfair trade. It wants to export flour to Manila at only seven percent duty, yet for the Philippines to export flour to Turkey, the import duty is 103 percent.