On 27 March 2021, an investigation was initiated on the alleged dumping of cocoa butter (solid & liquid) ("products") originating or imported from Malaysia. The investigation commenced following a petition filed by Altinmarka Gida San. ve Tic. A.S ("Petitioner"), a large domestic cocoa butter producer in Turkey alleging that the dumping is causing or threatening to cause material damage to the domestic market.
Based on information provided by the Petitioner, it was alleged that imports of the products had induced the suppression of prices in the local industry. The Petitioner claimed that its production rate of the products had decreased in 2020 in comparison to 2018. It was also indicated that domestic sales in 2019 and 2020 remained lower than in 2018 and that within the period of 2018-2020, the unit product profitability of the products was in the negative.
Malaysia is at the forefront of the global market for cocoa butter both in terms of production capacity and export capacity; being among the top exporters of cocoa butter in the world with large exports to countries such as the United States, Japan, Estonia, Turkey and Canada. In 2019, Malaysia was reported the 3rd largest exporter of cocoa butter, oil and fats behind the Netherlands and Indonesia.
In the event the Government of Turkey finds the allegations to be proven true, the Government of Turkey may impose anti-dumping duties on imports of the products from Malaysia.
Interested parties who wish to respond to the investigation must do so by 3 May 2021.
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