Brazilian trade body approves antidumping measures on milk powder from Argentina and Uruguay

Brazil’s Foreign Trade Chamber approved antidumping measures on milk powder imported from Argentina and Uruguay during an ordinary meeting held on Thursday, May 28. The measures, which could take the form of a surcharge on foreign products, will not take effect immediately.

The chart below shows the monthly volumes of powdered milk imported by Brazil in containers via seaborne trade, according to Datamar data:

Powdered Milk Imports | Jan 2023 – Apr 2026 | TEU

Source: DataLiner (click here to request a demo)

The government’s economic team wants to assess the possible impact of the decision on food inflation. The issue was also brought to the attention of President Luiz Inácio Lula da Silva.

The application of the measures will depend on a new assessment by Gecex, with no date yet set, according to people familiar with the matter.

According to the sources, the investigation, launched in late 2024, found that dumping had occurred in milk imports from Uruguay and Argentina. The ministries that make up the committee unanimously supported measures to protect Brazil’s domestic production sector.

The application of the measures, however, was postponed at the request of the Ministry of Planning and Budget. The ministry, led by Bruno Moretti, proposed suspending the immediate application of the antidumping measures to assess their possible impact on food prices for consumers in Brazil. A potential increase in food costs worries the government’s political wing, especially in an election year.

There was consensus on the importance of antidumping measures for the domestic dairy chain, particularly for small producers. However, members of the government’s political and economic teams defended a public interest assessment. Gecex members supported suspending the immediate application of the measures.

According to the sources, the issue was brought to the attention of President Lula, who is aware that the application of the antidumping measures has been suspended for now while the inflationary impact is assessed.

In early May, the Brazilian Confederation of Agriculture and Livestock, or CNA, which requested the antidumping investigation, filed its final statement in the process. In the document, the organization reported progress in the case, including the resumption of a previous understanding that milk powder and raw milk are similar products, recognition of dumping by both origins and an indication that imports had harmed Brazilian milk production.

According to calculations by the Trade Defense Department, dumping margins were found to exceed 60% in some cases.

Source: Globo Rural

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