By Justine Irish D. Tabile, Senior Reporter
THE TURKISH EMBASSY in Manila said changing market conditions may warrant allowing the Philippines’ anti-dumping duty on Turkish wheat flour to expire in January.
“We have had an anti-dumping measure in place for Turkish flour for more than 10 years now,” Türkiye Ambassador to the Philippines Niyazi Evren Akyol told BusinessWorld.
“We believe the conditions that were relevant and justified the implementation of that measure 10 years ago are no longer in place,” he added.
The Philippines imposes company-specific anti-dumping duties on wheat flour imported from Türkiye, with dumping margins ranging from 2.87% to 16.19% of the export price, depending on the exporter.
The measure was first imposed in 2015 and extended in 2020. The Department of Agriculture (DA) ordered a second extension in December 2023, which took effect on Jan. 15, 2024, for another three years. A further renewal would mark its third extension.
In March, the Tariff Commission issued a notice on the impending expiry of the measure on Jan. 14, 2027. Interested parties had until July 14 to request an expiry review before the DA.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. confirmed that the department had received a request to extend the anti-dumping duty and was reviewing it.
“I know there is a request for an extension, and we are looking into it,” he told BusinessWorld via WhatsApp.
Mr. Akyol said rising Philippine demand, insufficient domestic production and the need for more diversified suppliers strengthened the case for allowing the measure to expire.
“As a result, the impact of Turkish flour coming in will not be the same as before, when it was considered disruptive,” he said. “Demand trends are different, and everyone’s trade-networking priorities are different.”
He said Türkiye will respect the decision of Philippine authorities but maintained that current commercial conditions favored the measure’s expiry.
“From a commercial point of view, we believe the time is conducive to letting this expire, and we hope this analysis will be shared by the Philippine authorities,” he added.
Ernesto N. Chua, president of importer and wholesaler Malabon Longlife Trading Corp., also urged the government to allow the measure to expire, saying increased competition could lower prices without necessarily harming domestic producers.
“I hope they won’t extend it because if you have more competition, consumers benefit as prices come down, without necessarily affecting the local industry,” he said.
Mr. Chua, who also chairs the Philippine-Turkish Business Council, said the council was in talks with the Agriculture and Trade departments regarding the measure.
His company and other importers stopped sourcing flour from Türkiye after the anti-dumping duty was imposed.
“We currently import flour from Vietnam, where we enjoy duty-free importation. But if the anti-dumping duty is lifted, we will resume importing from Türkiye,” he said.
Mr. Chua noted that Turkish flour would still face the regular 3% tariff even without the anti-dumping duty.
Türkiye’s distance from the Philippines and higher freight costs amid the Middle East conflict also make its flour less competitive than supplies from Vietnam.
“Unless the Turkish supplier reduces its price, that is when it will become more competitive,” he said.
Meanwhile, Food Processors and Exporters Organization, Inc. President Ruben L. See said the government must balance adequate supply and reasonable prices with the need to protect domestic flour producers and their workers.
He said local producers face higher costs because they import some of their raw materials, although domestic production remains insufficient to meet the country’s requirements.
“If there are no imports while there is a shortage, local manufacturers will increase their prices,” he said. “There should be a balance, as long as our local manufacturers remain profitable.”
previous post
