South Africa halts anti-dumping measure on Brazilian chicken for twelve months

Brazilian frozen chicken will re-enter South Africa without paying extra taxes as the country suspended, for 12 months, the anti-dumping tariffs that had been in force since December last year.

Until now, frozen chicken from Brazil entered the African country paying extra anti-dumping tariffs that ranged from 6% to 265.1%, in addition to the Import Tax. The South African government claimed that the Brazilian supply harmed local producers.

Authorized by the World Trade Organization (WTO), the imposition of anti-dumping duties is justified when a country exports an item below its cost price. Under international law, the practice is understood as unfair competition.

The Ministries of Economy and Foreign Affairs have protested the allegation. In a joint note, the two ministries reported that they maintained constant dialogue with the Brazilian companies investigated and with South African authorities. “The Brazilian government will remain attentive to the case in the expectation that the temporary suspension of anti-dumping tariffs will become definitive,” the statement read.

See below how the main trends in terms of the volume of chicken meat (HS 0207) exported from Brazil to South Africa from January 2021 to Jun 2022. The data below is from DataLiner.

Chicken meat (HS 0207) exports to South Africa | Jan 2021 – Jun 2022 | WTMT

Source: DataLiner (click here to request a demo)

Last year, Brazilian exports to South Africa exceeded US$ 1 billion, with frozen chicken cuts accounting for approximately 17% of total exports. “Brazil is a dependable and competitive chicken meat supplier. Brazilian production is critical to ensuring food security in various markets, particularly given the current imbalance in international distribution chains and general price increases,” the joint note concluded.

Source: Comex do Brasil

To read the full original article, please go to: https://www.comexdobrasil.com/africa-do-sul-suspende-por-doze-meses-medida-antidumping-contra-exportacoes-do-frango-congelado-brasileiro/

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