Colombia cannot impose taxes on imports of frozen potato chips from the Netherlands, Belgium and Germany, the World Trade Organization (WTO) has ruled in a case brought by the EU.
The South American country found that the three European countries were selling their frozen fries at dumping prices (below the market price) on the Colombian market. This would lead to unfair competition and disadvantage local potato chip suppliers. This was the reason why the Colombian government imposed import taxes on European products.
But according to the EU, this is not price dumping at all. Brussels then turned to the WTO to take the levies off the table. That organization already announced in October that withdrawals are not allowed, because there would be no dumping. Colombia resisted, but is now losing ground again.
This means that South Americans must allow frozen chips on their market without levies. If not, the EU could take countermeasures. The Netherlands, Belgium and Germany sell around 20 million euros worth of frozen french fries to Colombia every year.
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