Fruit packaging company, SPC Ardmona, has welcomed an official recommendation by Australia’s Anti-Dumping Commission (ADC) to impose duties on two Italian tomato exporters, following a finding that the companies were ‘dumping’ canned tomatoes into Australia.
The complaint, in relation to the behaviour of Feger di Gerardo Ferraioli A.p.A., and La Doria S.p.A, was lodged by SPC, amid concerns the exporters were ‘dumping’ tinned tomatoes into Australia. The exporting companies’ products represent approximately half of the imported Italian tomatoes in Australia.
The news comes off the back of previous investigations by the ADC, which found found that 103 of 105 Italian tomato exporters were found to be dumping.
The Commissioner is recommending preliminary dumping duties be imposed at margins of 7.5 per cent and 5.1 per cent.
“This decision is critical, not just for SPC but for Australia’s manufacturing industry and food processing sector,” Reg Weine, MD, SPC, 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.”
This sentiment was echoed by vegetable industry body, AUSVEG, who agree that this development is central to maintaining the integrity of Australian vegetable and potato growers struggling against cheap, inferior foreign imports, and rising production costs.
“We hope that the imposition of duties will go some way to levelling the playing field for Australian producers, who must regularly compete against foreign producers with far lower costs of production, who in many cases are receiving government subsidies which further enhance their competitive advantage,” said Andrew White, deputy CEO, AUSVEG.
“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.
“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.”
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).
