The International Trade Administration Commission of South Africa (Itac) has decided to reinstate import duties on frozen potato chips after tariffs lapsed earlier this year.
The decision, effective May 17, follows an investigation by Itac since November 2021 into the impact of frozen potato chip imports on South Africa’s agriculture and agroprocessing activities.
The investigation culminated in the release of a final determination report on the alleged dumping of frozen potato chips from Belgium, Germany and the Netherlands, finding that South Africa has long been a prime destination for dumping below-cost frozen processed potato products.
Industry body Potatoes SA CEO Willie Jacobs says trade and global markets are, of course, important, but so is the protection of South Africa’s agricultural and manufacturing industries.
“The reality is that cheap or low-quality frozen potato chips entering the market could be detrimental to South African producers and the sector as a whole and could cause a surge in illicit trade activities.
“These regulations will go a long way in preventing this, allowing farmers who are currently expected to grow 2.5-million tons of potatoes this year, to thrive.”
Frozen fry import rates now stand at 67.33%, 239.% and 181.% for Belgium, the Netherlands and Germany, respectively, similar to those outlined by Itac in its Essential Facts finding in October 2022.
South Africa is one of the few countries in the world with a local supply of fresh potatoes all year round, with an estimated 400 000 t having been processed between 2017 and 2021.
According to Jacobs, the implementation of antidumping tariffs can help level the industry playing field, ensuring fair competition. “By supporting local producers, we can promote job creation, foster economic growth and maintain quality standards for the benefit of all stakeholders involved.
“This will also offer much-needed stability to consumers who are already facing significant pressures.”