February 20, 2006

Seafood company sues EU to change ruling

Fjord Seafood, a Norwegian seafood company, announced Friday it would sue the European Union to throw out a ruling that the company should set a minimum price on its products.

The objective of the suit is to invalidate the ruling and may also lead to a separate compensation suit if Fjord suffers financial losses as a result of the minimum price.

Fjord CEO Helge Midttun said that the company was going it alone, despite being  among ten companies singled out for an EU investigation and was later ordered to supplement its prices.

Fjord said the ruling violated EU's own dumping rules and fundamental rights described in the EEA (European Economic Area) agreement. The company also argued that there is no clear evidence that it dumped salmon in the EU market.

Midttun said the EU system must not be allowed to manipulate the Norwegian salmon industry under the guise of anti-dumping regulations. He added that by taking legal action, the company is securing stable conditions for the future of the salmon industry.

The suit will be heard at the EU's tribunals in Luxembourg and delivered around Apr 1, 2006.