The Philippine-Turkish Business Council expects the government to lift its decade-long anti-dumping duties on Turkish flour by 2026, saying the move would boost market competition and lower bread prices for Filipino consumers.
Ernesto Chua, chairman of the council and head of Malabon Longlife Trading Corp., said the duties, which range from 3 percent to 20 percent, have effectively shut Turkish flour out of the Philippine market for 10 years.
“Hopefully, they will lift the anti-dumping. This is the 10th year already, and there was no import at all,” Chua said.
“If we have more competition from other countries, we can bring down the price of wheat flour, and the ordinary people will benefit from a cheaper pandesal,” he said.
The anti-dumping duties, initially imposed by the Tariff Commission in 2014, were extended in December 2023 for another three years, keeping them in effect until 2026.
The Department of Agriculture decided on the extension after a second expiry review by the commission concluded that lifting the duties would likely lead to a recurrence of dumping and “material injury” to the domestic industry.
Chua said, however, the market landscape has changed. He said local millers are now engaged in stiff competition, which has kept prices relatively reasonable.
“Before, when Turkish flour was still allowed, margins were very high,” he said.
“But now, local players are more competitive. Still, if more importations are allowed, then there will be more competition and the consumer will benefit,” said Chua.
At its peak, Turkish imports accounted for about 10 percent of the Philippines’ flour consumption. At the time, Turkish flour retailed for P200 to P300 less per 25-kilogram bag than locally milled flour, making it a competitive option for bakeries and food processors.
The anti-dumping duties, imposed under World Trade Organization rules to protect domestic millers from unfairly priced imports, have kept Turkish flour out of the Philippine market for a decade. But with the prolonged absence, Chua said it is time to revisit the measure.
