Taiwan Confirms Levies on Foreign Brand's Beer Brewed in China
Anti-Dumping Duties on Chinese Beer in Taiwan
REPORTER:
Beer, a popular refreshment here in Taiwan with the public drinking hundreds of millions of liters of it each year. But now, concerns of dumping from the Chinese market has the local industry concerned.
Alex Tseng (CHAIR, TAIWAN BREWERS ASSOCIATION):
When there’s unfair dumping like this, it leaves other businesses unable to compete. If you disrupt market order and flood the entire consumer market with your beer, it’s extremely unfair to other producers.
REPORTER:
Taiwan has now imposed anti-dumping duties on Chinese beer, saying foreign brands are using China’s cheap manufacturing to undercut the market. Imported beer already makes up more than half of all sales in Taiwan, and the Brewers Association says Chinese imports alone account for about 40%.
REPORTER:
The new rules mean from September 24th, Chinese-made beer — including those brewed by Budweiser and Kirin — will face duties between 19% to 52%. That’s after a provisional duty of up to 64 percent was put in place in July, after the Taiwan Brewers Association filed an anti-dumping complaint.
REPORTER:
A local supplier of China-made Budweiser and Busch told TaiwanPlus this new levy means prices will increase, potentially affecting businesses like restaurants and bars that sell beer.
David Chuang (OWNER, LIGHT THE NIGHT):
We as businesses may have to absorb the cost ourselves. But if the levies significantly raise the overall cost we’ll have no choice but to pass it on to consumers.
REPORTER:
That’s a move that could worry some beer drinkers here in Taipei.
VOXPOP:
It doesn't have to be a Taiwanese brand just whichever one is cheaper.
REPORTER:
But not everyone is worried about price hikes. Some local brewers believe the new levies could help the local market by encouraging people to buy more Taiwan-made beer.
Tuan Yuan-chieh (CO-FOUNDER, TAIWAN HEAD BREWERS):
After all, we're made in Taiwan, our facilities are based here, and we've invested hundreds of millions of dollars. Of course we hope to contribute to Taiwan's economic growth, so naturally we want to encourage people to drink more made-in-Taiwan beer.
REPORTER:
As Taiwan’s anti-dumping probe wraps up, beer drinkers in Taiwan will soon find out whether new duties change what ends up in their glasses.
