Tomato processor SPC has thrown its support behind the Australian Anti-Dumping Commission’s (ADC) investigation into the flooding of the Australian market of Italian produced canned tomato product, dismissing claims that the ADC has contravened WTO rules.
The company responded to claims by a European Commission directorate, which alleges that the subsidies fall outside of international agreements on free trade.
SPC said it is relying on the process undertaken by the Anti-Dumping Commission, and believes it to be fair, comprehensive and thorough. “Coming into SPC 3 months ago, I was surprised to learn the true extent to which potentially unfair practices are affecting our business domestically. 103 of 105 tomato importers have already been found to have illegally dumped tomatoes in this market,” said SPC Managing Director Reg Weine. “This case is of great importance to SPC and our future operations”.
The largest canned fruit and vegetable processor in Australia said it was asking for a ‘level playing field’ to operate in, and for policy makers to ensure consumers can make their own choice while shopping.
The industry body AUSVEG also gave its support to SPC’s position, and Deputy CEO Andrew White expressed concern over Australian producers competing with foreign producers, who have lower costs of production and government subsidies providing further competitive advantage. “We are worried that Australian producers are often forced to compete against foreign producers, with lower costs of production, who in many cases are receiving government subsidies which can further enhance their competitive advantage.” AUSVEG also supported a hard line government stance.
Competing on an equal footing was more important as the agricultural and trade sector focuses more on free markets and international trade, according to Mr White. ““We support the government taking a hard line in relation to the dumping of cheap imported produce on our shores,” he said.
The practice of dumping seriously undermines investor confidence, according to a statement by SPC. This is made worse when international competitors, with assistance from government subsidies, are able to undercut local manufactured goods, threatening local jobs. Australian retail canned tomato prices have dropped as low as 40 cents in 2015, an unsustainable level, according to the company.
Loss of volume to dumped imports fundamentally changes our cost base and ability to recover costs. Resolving this inequity and ensuring a level playing field is a priority and not just for SPC but the wider food industry where dumping could be occurring.
