Continued Threat To NZ From Severely Disrupted Global Supply Chains

• As an open market economy, NZ is attractive to dumpers
• Remedies available to local businesses and industries

Potatoes are not the only industry at risk from disrupted overseas businesses looking to dump cheap products in New Zealand, but the tools are there to ensure a level playing field for local businesses.

The longer the Covid-19 pandemic goes on across the world, the greater the risk to New Zealand markets from products imported and sold here at prices below the market price in their country of origin, according to a specialist advisor working with local interests on current anti-dumping cases.

Simon Crampton is assisting Potato New Zealand with its anti-dumping case and believes that other New Zealand industries and businesses are at risk of destabilisation from dumped products as the result of continuing turmoil in global supply chains, amongst other reasons.

“Continuing widespread lockdowns is just another reason forcing producers to find new markets and quit stock. We’ve seen this with the export of potato products from Belgium and the Netherlands which is currently the subject of an anti-dumping case in front of government officials.

“Many producers overseas are finding historic markets for their products have been devastated by Covid responses, including lockdowns, and they are looking to quit stock to new markets. New Zealand is attractive because of its response to the pandemic and being open for business.”

Crampton says when such dumping occurs our local producers and manufacturers are placed in a precarious position. This is exactly what has happened with the European potato products, but fortunately, Potatoes NZ was quick to act on behalf of is local industry, comprising growers and processors.

He says that while fighting cases of alleged dumping can be a long road – Potatoes NZ first raised the issue in July; its application was accepted Ministry for Business Innovation and Employment (MBIE) in September; and the Ministry’s Trade Remedies team began its investigation in late October – action to defend local production and jobs is worth taking.

“Unfortunately, many at risk industries remain unaware of the steps they can take to remove the effects of injury to their businesses, and can better defend their markets.

“At the same time, unless it is a potentially terminal situation, those managing businesses are often daunted by the prospect of taking anti-dumping action, and simply turn the cheek, hoping the threat will eventually recede.

“While MBIE has a toolbox available to assist industries addressing dumping issues, they have made it very clear that it is up to the industry affected to submit a properly documented application before any investigation is commenced. This can be challenging for most business leaders. Hence the value of independent specialist advisors.”

Crampton’s pick is that it is going to be quite some time before global supply chains are restored to their former order, which means some exporters of dumped goods will be looking to quit products in New Zealand at the expense of local businesses.

“In these circumstances I would urge local businesses and industries to use the tools available to protect themselves from unfair competition from imported products.”

Crampton has also assisted with the canned peaches case, brought by Kraft Heinz (on behalf of Wattie’s), against allegedly dumped Greek Peaches. Government official concluded continued anti-dumping duties were warranted, and the final stage in that investigation, the Public Interest Test is progressing.

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