Background on the Dispute
The World Trade Organization (WTO) backed the European Union (EU) in a case against tariffs imposed by Colombia on imported frozen French fries from Belgium, Germany, and the Netherlands.
Previous Ruling in Favor of EU
In December 2022, the EU won an initial case asserting that anti-dumping duties ranging from 3% to 8% on frozen French fries since November 2018 violated global trade standards.
WTO’s Recent Support for EU
On Thursday, the WTO concluded that Colombia had not complied with the previous ruling, paving the way for the EU to exercise its right to retaliate, although Colombia can still appeal first.
Symbolism and Impact
Though the dispute has a small monetary value, it holds symbolic significance, especially for Belgium, which claims to have invented French fries.
The EU exported frozen French fries to Colombia worth 23 million euros (approximately 26.8 million USD) in 2016, before Colombia initiated the tariff adjustment process. The tariffs affected 85% of the EU’s frozen French fries exports to Colombia.
WTO’s Calculation Critique
The initial ruling by the WTO’s dispute resolution body deemed Colombia’s tariff calculation method incorrect.
Key Questions and Answers
- What is the dispute about? The EU and Colombia are in a tariff disagreement over frozen French fries imported from Belgium, Germany, and the Netherlands.
- Who initiated the dispute? Colombia imposed tariffs on imported frozen French fries, prompting the EU to challenge this action at the WTO.
- What was the initial ruling? The WTO ruled in December 2022 that Colombia’s anti-dumping duties on frozen French fries violated global trade standards.
- What is the recent WTO support for EU? The WTO concluded that Colombia failed to comply with the previous ruling, allowing the EU to consider retaliatory measures.
- Why is this dispute significant? The dispute holds symbolic importance, particularly for Belgium, which claims to have invented French fries. The case affects a substantial portion of the EU’s frozen French fry exports to Colombia.
