Shanghai-based Dumex, which imported more than 208 metric tons of the tainted whey protein concentrate, said on Sunday that 12 batches of its baby formula products had been affected. [Photo: CNS/Wang Dongming]
(ECNS) -- Chinese importers of dairy products from New Zealand dairy giant Fonterra can claim compensation for their losses as victims, according to law and economic experts on Tuesday.
Fonterra should bear full responsibility for the incident, and Chinese importers are entitled to claim compensation, said Liu Junhai, a law professor at Renmin University.
The losses of Chinese firms should be compensated, as potentially contaminated products have been recalled, Jin Bosong, an economist with the Ministry of Commerce (MOC), said, adding that once Chinese consumers demand compensation from these firms, the claims can be transferred to Fonterra.
Jin said lawsuits can be filed in China and are within the range of common international trade disputes. Liu added that whether Chinese firms file lawsuits in China or in New Zealand depends on provisions in their contracts.
Both dismissed concerns that Chinese should be afraid of filing lawsuits, as Fonterra is the world's largest dairy exporter, and more than 80 percent of raw milk powder in China comes from New Zealand.
Jin said everybody is equal before the law, and a firm should be punished for providing unsafe products, no matter how big it is. There is no limit for the claim and Fonterra should compensate the total loss, Liu said.
Fonterra said on Friday that some whey protein produced in May 2012 contained Clostridium botulinum, which can cause botulism.
Four Chinese importers have recalled products, including Hangzhou Wahaha Health Food Co., Ltd., Hangzhou Wahaha Import & Export Co., Ltd., Shanghai Tangjiu (Group) Co., Ltd. and Shanghai-based Dumex Baby Food Co., Ltd.
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