F&P winning whiteware battle

By ELLEN READ

Fisher & Paykel yesterday went two-nil up in the battle over Korean whiteware imports when Commerce Minister Paul Swain announced he was imposing interim anti-dumping duties on washing Machines imported from Korea.

The Ministry of Economic Development began a dumping investigation late last year, following claims by Fisher & Paykel that Korean refrigerators and washing machines were being sold to New Zealand importers at prices lower than on the Korean domestic market.

Last month, Mr Swain imposed interim duties of between 25 and 71 per cent on fridges imported from Korea.

Yesterday, he said the washing machine investigation had found that all Korean washing machine imports were being dumped in New Zealand, and F&P's prices had been affected and its profits hit as a result - hence the need for interim duties.

These interim duties will range from 52 to 93 per cent, depending on the Korean supplier and the size of the washing machine.

Both sets of duties are imposed pending a final report, to be released by June 10.

Fisher & Paykel corporate affairs manager Richard Blundell said the decision was a significant victory.

"We have to wait until June 10th for the final decision, but like refrigeration it certainly vindicates our rationale for requesting the investigation in the first place."

F&P's main retail rival, Pacific Retail Group, which sells Samsung Korean appliances through its Noel Leeming and Bond & Bond stores, warned that prices would rise as importers of Korean whiteware were shut out of the market, leaving F&P with less competition.

Chief executive Peter Halkett said he was annoyed and disappointed at the decision. "It effectively eliminates laundry [appliances imported] from Korea."

Mr Halkett said the interim duties could make a few hundred dollars difference to Korean washing machine prices.

Fisher & Paykel and Pacific Retail Group have been sparring in recent days over claims by Mr Halkett that F&P is selling its appliances cheaper in Australia than here.

Fisher & Paykel denies the accusation.

Mr Halkett said he was annoyed the Ministry did not take the New Zealand-Australia price information into account in its decision.

"I've got absolutely no confidence in the Ministry to consider the wider issues."

Goods are said to be dumped if the price at which they sold to New Zealand importers is less than their normal value in the country of export, in this case Korea. The difference is called the margin of dumping, which has been found to range from 42 to 105 percent of export prices examined over a one-year period, the MED said.

Dumping is not illegal or inconsistent with World Trade Organisation agreements, but WTO members have agreed that action may be taken against dumped goods which cause or threaten injury to a domestic industry.

If its final report finds in favour of anti-dumping duties they would would be set at a level calculated to remove the injury to the local industry and as such could be lower than the margin of dumping, the MED said.