Australia’s Anti-Dumping Commission is recommending that duties be imposed on two Italian tomato exporters following its finding that they were ‘dumping’ canned tomatoes into Australia.
Exports from the two companies, Feger and La Doria, represent approximately half of the imported Italian tomatoes in Australia, and the Anti-Dumping Commission (ADC) is recommending preliminary dumping duties be imposed at margins of 7.5 per cent and 5.1 per cent.
In previous investigations into canned tomatoes, 103 of 105 canned tomato exporters from Italy were found to be illegally dumping their goods and duties were imposed. The ADC is now recommending that duties be imposed on these remaining two exporters.
Fruit and veg processor, SPC, which lodged the complaint against he companies, said it welcomed the findings.
In its submission to the Anti-Dumping Commission, SPC estimated that the processed tomato industry in Italy benefited from subsidies paid to tomato growers under Europe’s Common Agricultural Policy (CAP).
Since 2010, SPC said, the illegal dumping of tomato products has resulted in material damage to SPC including reduced margins and declining profitability as it has struggled to compete on price with these heavily subsidised tomatoes.
“This decision is critical, not just for SPC but for Australia’s manufacturing industry and food processing sector,” SPC managing director, Reg Weine, said.
“The future of Australia’s food processing sector, horticulture industry and the livelihood of Australian farmers is being undermined as more and more cheap imports flood the market and find their way onto supermarket shelves.
“We need a level playing field to succeed, and today’s statement gives me confidence that SPC can continue to produce the quality clean, green Australian products that our consumers love and we are famous for.”
Horticultural body, Ausveg also welcomed the finding. AUSVEG said it had previously highlighted the significant effect that Europe’s CAP could have on Australian growers, with vegetable imports from Italy, the Netherlands, Belgium, Spain and France having increased substantially since 2007-08.
“We are hopeful that this recommended action will send a further message to foreign businesses exporting to Australia that they cannot simply dump their cheap produce on our shores and hurt the local industry in the process, ” AUSVEG deputy CEO Andrew White said.
“The effects of this illegal dumping can reach far beyond the tomato industry. If left unchecked, they could set unwanted precedents for international companies exporting to Australia that could have flow-on consequences for the Australian vegetable and potato industries.”
The Australian government will now consider the report and make a final decision.
