STRAWBERRY LOBBYING

Catherine Stecz, Magdalena Rotkiewicz-Chudzicka and Bartholomew Czyczerski Proceedings of the team and Safeguards (anti-dumping, subsidy and against excessive imports), Trade Policy Department Ministry of Economy, said the successful lobbying for the imposition of anti dumping duties on imports of frozen strawberries from China.

Strawberries this summer, there were few, and the price does not encourage the consumption of excessive amounts of alcohol. On the market there are also handsome, though tasteless, strawberries imported. As you know, the strawberry is the fruit of a fragile and must be rapidly convert to compotes, jams or juices. The excess must be frozen and used to produce milk gradually throughout the year.   

Saving domestic processing and protection against harmful imports sometimes necessary, but it can also cause problems for domestic producers. especially when the prices of foreign products are lower than domestic prices. So it happened in the case of frozen strawberries from China. they have arrived Polish at prices so low that led to the suspicion of dumping, and threatened a major decline in profits for our growers.

From 1 May 2004, Polish role as an EU Member State, trade policy has been limited, because this sphere is the domain of the Community, and here the main role of the EU institutions, the European Commission at the helm. Sanctions on exports of frozen strawberries to the European Union, including Polish, dumped by Chinese companies could only use the European Commission (EC) and Council of the EU.

Polish-EU ambitious task given the young lobbyists lobbying the Ministry of Economy. Catherine Stecz, Magdalena Rotkiewicz-Chudzicka and Bartholomew Czyczerski Proceedings of the team and told Safeguards decision maker for the successful Polish and EU lobbying by the ordeal.

The first signs that the market strawberries something bad happens, submitted to the Ministry of Economy two years ago. Farmers complained that they want to buy refrigerators from their strawberries at prices so low that I completely unprofitable for growers. The purchase price was lower than the cost of cultivation. Chinese exporters of frozen strawberries sold to us at about 300 euros per tonne, which is far cheaper than they cost in the European Union. Only in  the period January - April 2005, imports of frozen strawberries from China to the EU grew by 210%. This growth was possible because of the low prices of imported frozen strawberries. Poland is the EU's largest producer and exporter of frozen strawberries. The gradual loss of market outlets in the EU began to have serious consequences for the Polish sector of soft fruits and their processing. There was a danger that it can even lead to the collapse of the entire industry of soft fruit in Poland. The abandonment of frozen strawberries in Poland, could result in permanent dependence on the processing of EU imports from third countries and the conditions dictated by these countries.

Such alarming signals have reached the Ministry of Agriculture and Rural Development (MARD), and it referred the matter to us because of our ministry is   the Department of Trade Policy, and the right to take up this matter and the team of Proceedings Safeguards.   In this way,   the problem came to our team. One of the experts on our team is the permanent representative of the Polish Anti-Dumping Committee (ADC). This committee is the Advisory Commission, which has the power to impose safeguard measures (eg anti-dumping duties) to be made ??by means of injurious imports of goods into the EU. The imposition of definitive safeguard measures, in turn, is the responsibility of the EU Council. Many goods goes to the EU market through unfair trade practices, and the Union defends the interests of the Community industry by conducting investigations leading to the imposition of safeguard protection measures, mainly in the form of duties. The ADC Committee of representatives from Member States and chaired by a representative of the EC. ADC Committee is a consultative body and its opinions are not binding for the Commission, which, however, has a duty to consult with him among other things, safeguard investigations are initiated, the imposition of provisional measures and proposals to impose a definitive safeguard measures. The final result of the vote in the Committee of ADC heavily influenced by the backstage talks and negotiations. Therefore, it is important to keep in touch - also, and perhaps even primarily - those informal, with other members of the Committee. Particularly useful in situations where there is a need for lobbying to gain support in a particular dispute, as was the case with   frozen strawberries.

Going back to "our" frozen strawberries, it should be noted that since the Polish entry into the EU was the first safeguard investigation initiated by the Polish side. Our team was heavily involved in all the complicated procedure for the protection of EU procedures, adjustable EU regulations, from bringing proceedings, and ending with the imposition of definitive anti-dumping duties. This was a huge task, especially since as a new member of the EU did not have any experience in this field.

This reckless venture implemented in stages and covered a range of activities. They included, inter alia, identify all stakeholders of Polish companies, commercial data gathering, the mobilization of domestic industry to participate actively in the proceedings, draw up a request to open proceedings, then the struggle for the imposition of provisional and then final anti-dumping duties. The prerequisite for achieving the various tasks was to conduct at different levels of a comprehensive and effective action to lobbying among members of the ADC, the European Commission and representatives of EU governments. An additional difficulty was the fact that we were dealing with the agricultural product, while so far only dealt with industrial goods.

At the beginning of the investigation conducted almost detective: just do not know where the problem occurred - from China, or perhaps from Morocco, which also exports large quantities of   strawberries to the EU market? Quickly, however, managed to eliminate the Moroccan strawberries, because their prices were higher than those charged in Poland. It turned out that the problem only makes Chinese exporters.

The first aim of our work was the initiation of protection by the European Commission. In the first stage was a safeguard investigation against excessive imports. Its specificity is that it is conducted erga omnes , that is, against imports of a product regardless of country of origin. This is proceeding very popular in the European Union and rarely carried out. So convinced enough members of the Committee Safeguard (SFG), a Committee on Safeguards against excessive imports, and the European Commission itself, which is an institution to initiate safeguard cases, to its opening, it was a challenge. But you - Poland has won support from most EU countries vote in the Committee at the request of SFG and prepared by the Ministry in cooperation with the Polish Ministry of Agriculture and the European Commission initiated a refrigerator.

It was a really big success, because so far managed to do this only once Spain, which was defending itself against excessive imports of mandarins, led to the imposition of definitive measures. Unfortunately, we could not continue the proceedings for lack of continued support of other EU member states. As stated, the problem of dumped imports only affected China. And precisely for this reason, in December 2005, Poland formally withdrew a request to safeguard against excessive   imports into the EU market of frozen strawberries from third countries.

At the same time, irrespective of the above actions, the GM in collaboration with MARD, Polish refrigerated and the EC, has developed a proposal to initiate anti-dumping investigation against imports of frozen strawberries to the EU from China.

It is clear that in the case of anti-dumping proceedings, the applicant must be by real entrepreneurs, not a EU member state. Our role as officials of the ministry, was therefore officially confined to mediate between Polish companies and the EC. In fact, the main burden of work in that procedure, the work on drawing up a proposal to initiate proceedings, rested upon us.

The biggest problem turned out to motivate our fragmented producers to give us the data. Their extraction was a real ordeal. Not received any replies to the questionnaire, does not respond to faxes that were sent incomplete data. With each company individually we had to establish direct contacts, phone calls, prompt, go personally and check the implementation of the EC requests. It was an enormous task of our entire team. However, it later turned out worthwhile.

At the next stage of selection, there has been a formal applicant. European Commission's very worried fragmented environment of Polish producers of strawberries. Consolidation was needed. KE needed organization in which he could be contacted directly. We led so to a Polish Freezing Industry Union (UPPC), which continues to operate and successfully unites the environment.

Then had to arrange verification visits to Poland of the European Commission. The EC has selected nine companies, the so-called. sampling , or sampling. Selected companies were checked for validity and verification of the proposal formulated in the data.

It must be realized that the organization of visits to these companies, scattered across Poland, mostly in small towns, was a big challenge because of the logistical difficulties associated with transportation and finding accommodation. It is impossible not to mention the language difficulties - we had to serve as interpreters, since the owners, presidents and accountants of our companies do not speak English.

Rewarding these efforts, in January 2006 the EC initiated anti-dumping investigation against imports of frozen strawberries from China, at the request of Polish producers of those goods, which constitutes about 40% of EU production. In our proposal postulowali?my immediate imposition of provisional anti-dumping duties that hamper imports from China.

Once we close this stage, there was an unexpected problem in the form of a Green Paper ( Green Paper ), which concerned the reform of the EU's system of protective measures. The originator of the document was trade commissioner Peter Mandelson, a known supporter of trade liberalization. From that moment on we began to have increasing problems that lead to the imposition of provisional measures first, then the final.

How much lobbying effort to convince require the partners from 24   EU Member States by virtue of our businesses, we know only ourselves. Was first necessary to determine in which countries should focus the greatest efforts lobbingowy. Devoted much attention to Spain and France, as these countries import a lot of fruit, and the Germans. At this stage, our lobbying was to write letters from our minister to the ministers of EU member states. Held a meeting backstage at the Anti-Dumping Committee, during which we tried to sound out which countries are ready to support us and where we still need to lobby. Thanks to this know what that interest you.

Began a series of contacts and meetings   at different levels: the ministerial and working groups. During attempts to persuade some of the representatives of Member States to grant the Polish applicant was required to offer support to partners in exchange for a promise of support of the favor of Polish in other proceedings. Negotiations were, therefore, a transaction "something for something." In so far as to be effective, evidenced by the fact that our request for provisional measures was supported by as many as 20 Member States.

As a result of our efforts, 18 October 2006, has imposed provisional anti-dumping duties in the form of ad valorem duties ranging from 12.6 - 34.2%, and for one exporter in China found a rate of 0%. This meant that importers of frozen strawberries China obligation to pay, in addition to the duties arising from EU Customs Tariff, an additional anti-dumping duty. The decision culminated nearly two years of the EC government's efforts to protect the EU market for the introduction of frozen strawberries. Duration measures enabled the Polish companies producing frozen strawberries to restructure and adapt to the conditions of competition within the EU.

Provisional duties can be imposed for a maximum of 6 months, so in case of no imposition of definitive duties expire in April. Then we could not afford. So we continued efforts to lobby for support for the imposition of definitive duties. It was the last stage of our work, while the most difficult game.

Following the implementation of the provisional anti-active, manual processing of frozen strawberries in the EU. They strive to ensure that the final measures were not imposed, suggesting their negative impact on producers of yogurt and jams. Originally, as a result of strong pressure processing companies, the EC proposed to terminate the proceeding without the imposition of definitive measures. Justified its decision by the fact that the measures would not be in the general interest of the Community. Thus, the threat hanging over us does not proceed by the EC. It was necessary to mobilize all forces and move to the last, yet decisive attack. It was hard. We had to prepare a substantive analysis of the economic arguments capturing the EC. Again, the carousel started lobbying, a series of meetings, przekonywań. The whole process took place in lobbingowy dizzying pace from January to March this year. We had to make it, because it expired in April, provisional measures and the danger of our industry remain unprotected.

MG and MARD, and the Polish Embassy through the Ministry of Foreign Affairs joined the large share of lobbying with the use of multiple channels of contact with the countries of the EU and the European Commission. The aim was to bring about changes in the EC proposal. The case also included Commissioner Danuta Hubner. In the final stage of the heavily involved with the minister Martin Korolec, meeting in Warsaw with the ambassadors of EU countries. While we wrote letters to all the commissioners in Brussels to endorse our position. Prime Minister Jaroslaw Kaczynski sent a letter to European Commission President Jose Manuel Barroso, agreed to the imposition of definitive measures.

And the final battle, we managed to win.

As a result, the EC has proposed the imposition of definitive measures in the form of a minimum import price of EUR 496.8 - 598 euros per tonne, depending on the tariff classification of imported frozen strawberries. Such a proposal has been accepted by a large majority of the Committee of Anti-Dumping. The minimum price for imports of frozen strawberries from China replaced the force since October 2006, provisional anti-dumping measures in the form of duties ad valorem .

Maintaining such a form of the measure would be very difficult to accept for the European Commission and many EU member states due to fluctuations in prices of frozen strawberries. In the case of significant price increases in anti- ad valorem duties would be more influenced by anti-dumping measure be charged in proportion to the price of imported frozen strawberries from China. remedies imposed were so high that it caused a surprise even our producers.

Since the imposition of definitive anti-dumping duties for imports of Chinese strawberry Although not stopped, but fell by half. And our industry has afforded protection to the next 5 years, because for such period shall be imposed definitive anti-dumping measures. Months-long struggle to protect the EU, including the Polish sector of frozen strawberries against dumped imports from China, assisted the great lobbying effort, produced tangible results. And we have the greatest satisfaction from the fact that they were directly involved participants in this successful   venture. And from that moment even more strawberry taste to us, even the Chinese.

Edited by: Magdalena Rotkiewicz-Chudzicka