The anti-dumping duties that Colombia imposed in 2019 on frozen French fries imported from Belgium, the Netherlands and Germany violate World Trade Organization rules. An arbitration panel of the WTO established it on appeal, the European Commission announced. The final and binding decision “is a victory for European producers whose exports to Colombia amounting to over 20 million euros have been damaged by Colombian tariffs,” the Commission said.
Previously, the WTO had already ruled in favor of the European Union, but Colombia appealed against this decision. Even now Bogota has to lose.
Colombia first announced levies in 2018. It said Belgium, the Netherlands and Germany had kept the price of their chips artificially low, driving local producers out of business. At Belgium’s insistence, the European Commission tried to change the Colombians’ minds, but to no avail.
The WTO has now ruled that Colombia’s intervention violates WTO international trade rules. “This sends a strong signal to any country considering limiting exports from the European Union. Anti-dumping investigations must be fully compliant with WTO rules,’ says the Commission.
In principle, Colombia cannot ignore the ruling. It must comply immediately, or within a deadline agreed with the EU or set by the WTO itself. In the event of Colombia’s default, the EU could seek permission from the WTO to take retaliatory measures.
The verdict was handed down by the MPIA, the institution that decides trade disputes in anticipation of a fully functioning WTO appellate body. Which was crippled by then US President Donald Trump and still hasn’t been reinstated. The conflict between Europe and Colombia is the first trade dispute resolved by the MPIA.
