US Potato Industry Calls for Tariffs on EU Frozen Fries

US Potato Industry Calls for Tariffs on EU Frozen Fries

The U.S. potato industry is asking the federal government to increase tariffs on incoming frozen fries from the European Union. In a recent letter sent to the Office of the U.S. Trade Representative, the National Potato Council stated that EU fry producers — specifically Belgium and the Netherlands — have the advantage of exporting to the U.S. which has led to a surge of imports on the US market.

“In recent years, imports of EU frozen fries have increased substantially,” the NPC letter said. “In 2015, imports of EU frozen fries stood at approximately 15,700mt (metric tons) with a value of USD12.2m. In 2019, EU fry imports were approximately 87,000mt with a value of USD101.2m. This represents a 500% increase in volume and more than 600% increase in value of EU frozen fry imports over the past five years. This trend is driven overwhelmingly by lower cost imports from Belgium and the Netherlands, which combined account for approximately 90% of all EU frozen fry imports to the United States. The price disparity is impacted by a range of factors, including EU agriculture policies that give EU potato growers advantages that U.S. farmers do not have. The result is that the considerable influx of product from Belgium and the Netherlands poses a growing challenge to U.S. potato farmers and makes it difficult for U.S. suppliers to compete with lower cost imported produce from these two countries.”

Currently, there is an 8% tariff on EU frozen fries. The NPC is asking for a 100% tariff in addition to that.

“The NPC supports USTR imposing additional tariffs of 100% on imported EU frozen fries and believes such action would constitute an appropriate enforcement mechanism in the Large Civil Aircraft Dispute. It would also help address the surge into the U.S. of lower cost product from the EU and protest American jobs.”

The letter was signed by NPC CEO Kam Quarles, as well as the Colorado Potato Administrative Committee, Idaho Potato Commission, Maine Potato Board, Potato Growers of Michigan, Northern Plains Potato Growers Association, Oregon Potato Commission, Washington State Potato Commission and Wisconsin Potato and Vegetable Growers Association.

In May, the New Zealand potato industry also called on its government to limit frozen fry imports from the EU.