The Ministry of Commerce of China announced the imposition of anti-dumping duties on purchases of broiler chicken products from Brazil following a 10-month investigation that revealed that this type of imports “damaged the domestic breeding industry.”
According to a Bloomberg Quint report, as of June 9, importers will have to pay Chinese customs deposits of up to 38.4 percent, the range of dumping allegedly borne by Brazilian exports. Brazil is the largest supplier of this product in China.
The main producers in Brazil, BRF and JBS, will be subject to a rate of 25.3 percent and 18.8 percent, respectively, according to a list published by the Chinese Ministry of Commerce, the report said.
ABPA protests the decision
The Brazilian Association of Animal Protein (ABPA) protested the decision and expressed in a statement that “there is no causal link between the exports of chicken products from Brazil and local marketing situations. The clarifications presented by the productive sector and the export agro-industries made clear the absence of any possible damage to the producers and the Chinese market.”
For the ABPA, the decision is a "regress" in the "good business relations" between both countries. The decision is provisional, but the final measure would be announced in August.
"The ABPA will continue to work within the framework of the process, seeking to reverse the temporarily imposed decision ... Despite a possible retraction in the performance of shipments in tons, the commercial flow must be maintained even with the imposition of the measure, in view of the need and high demand from the Chinese market,” said the organization.
In 2017, China was the destination of 391,400 tons of chicken meat from Brazil, equivalent to 9.2 percent of everything the country shipped in that period, according to ABPA data.