Turkish Flour Group denies subsidy

MANILA, Philippines - The Turkish Flour Yeast & Ingredients (TFYI) Promotion Group has denied claims of American group US Wheat Associates (USWA) that the Turkish government’s subsidy has allowed the sale of Turkish flour at lower prices in the Philippine than in their domestic market, amid an ongoing investigation being conducted by the Philippine government.

“The US through its Department of Trade has previously ruled that the Turkish Inward Processing Regime is not a form of subsidy.  It is practiced and known globally as the duty-drawback system, and complies with the rules established by the World Trade Organization (WTO),” TYFI chairman Turgay Unlu said in a statement yesterday.

He also said that as USWA is neither a party to the investigation nor a WTO representative, and should not be making definitive opinions on the issue.

The USWA said earlier that it supports the imposition of an anti-dumping duty on imported Turkish flour noting that the Turkish government has allowed the sale of their flour, shipments here at prices lower than in their domestic market.

The USWA made the statement as the Philippine Association of Flour Millers Inc. filed a petition before the Department of Agriculture seeking to raise the duty on imported flour to 20 percent from the current seven percent, on claims that Turkish flour millers are bringing their flour here at dumping prices or prices lower than in Turkey’s local market.

Unlu reiterated that there is no truth to the claims that Turkish flour is being sold at dumping prices as their flour shipments here are made specifically for the Philippine market and are not being sold in Turkey.

He said their group is in the process of preparing a detailed report on the matter.

TFYI board member Hakan Esen said Turkish flour is reasonably priced because of economies of scale at Turkish mills, the country’s strategic location, accessibility to wheat, and the practice of the duty-drawback system.

Esen also said the use of Turkish flour enables bakers and manufacturers of flour-based products here to pass on to consumers the cost savings it generates, thus maintaining the affordability of food products.