US honey-producer associations file anti-dumping accusations against Brazilian honey

Two American honey-producer associations are accusing Brazil of exporting honey to the USA with unfairly low prices.  If the accusation is proven, Brazilian honey will be taxed with a large anti-dumping surcharge in the United States, its primary market abroad. Brazil accounts for 19.3% of the honey imported by the USA. The two associations have also accused other countries.

According to Datamar data, Brazilian exports have grown in recent years. In 2020, a total of just under 2,500 TEU were exported, compared to just under 1,500 TEU in 2019. Most of these exports are shipped to the United States. In 2020 for example, the volume of honey exported to the US was 1,871 TEU, equivalent to 75% of all exports.

Brazilian honey exports with US destination breakout | 2016 to 2020 | in TEU

Source: DataLiner (click here to request a demo).

The American Honey Producers Association, based in South Dakota, and the Iowa Sioux Honey Association have filed an investigation with the Department of Commerce and the US International Trade Commission (ITC) against honey imports from Brazil, Argentina, India, Ukraine, and Vietnam.

In the case of Brazil, the dumping margin identified by the petitioners is 114.5%. “The vast majority of anti-dumping investigation requests here in the USA result in the opening and application of provisional and final law, including in the Biden administration,” says Lucas Queiroz Pires, a lawyer specializing in international trade at the Alston & Bird office in Washington.

“Therefore, there is a big chance that Brazilian honey exports to the USA will be surcharged with anti-dumping duties,” he said.

American producers complain that the price of American honey varies from US$ 1.50 to US$ 1.80 per pound, compared to US$ 0.70 in the case of imported honey; this illustrates the alleged damage American producers suffer.

The petition presented this week mentions US$ 4.35 million of Brazilian exports within 12 months, a figure that is not insignificant for this segment that is highly diversified and dominated by small producers in the country.

The document mentions imports from almost 20 Brazilian companies. According to the investigation filers, Brazil accounts for 19.3% of the USA’s total honey imports. Argentina has a 20.6% share, India 18.3%, Vietnam 26.3%, and Ukraine 6.0%.

In the USA, the Department of Commerce does the dumping analysis, and the ITC assesses the possible damage. According to Lucas Queiroz, experience shows that profit margins tend to be higher if foreign producers do not participate.

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