Home Agribusiness China Signals Support for Completion of Anti-Dumping Proceeding on Brazilian Chicken

China Signals Support for Completion of Anti-Dumping Proceeding on Brazilian Chicken

China's President Xi Jinping talks during a bilateral meeting with President Donald Trump, Saturday, Dec. 1, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais)

The Minister-Chief of Staff, Eliseu Padilha, reported today Dec. 3rd to Francisco Turra, CEO of the Brazilian Animal Protein Association (ABPA), the negotiations for the conclusion of negotiations between Brazil and China should be streamlined, as manifestation of Chinese President Xi Jinping, to the Brazilian president, Michel Temer, during bilateral meeting held at the G20 meeting in Buenos Aires (Argentina).

Currently, the Ministry of Commerce (MOFCOM), ABPA and industry companies are in negotiation for the establishment of a Price Undertaking (PU) — price agreements accordingly and according to the rules of the World Trade Organization (WTO). Negotiations between Brazil and China are in the final stage, but still, hang some points of consensus.

President Xi Jinping expressed the President Temer will look carefully and closely monitor the completion of these dealings. The goal is to consolidate a balanced understanding as soon as possible, with full transparency and gains for both sides. This is what the parties have engaged, explains Turra.

Context — China started on August 18, 2017, an investigation into dumping practices against Brazilian exports of chicken meat. The ABPA and his associates argued to MOFCOM the absence of a causal link between Brazilian exports and any possible site marketing situation, presenting retesting throughout the process.

Even before the data presented by the Brazilians, the Chinese Ministry imposed a provisional anti-dumping duty rate of the chicken meat imports from Brazil.

Nevertheless, Brazilian exporters have decided to move forward on a proposed agreement by China to allow the maintenance of the partnership, which is now a major player in the international trade of animal protein. The construction of the PU is one of the last steps in this process.

Even with the application of dumping surcharge, China maintains an upward trend in chicken meat purchases in Brazil. The Asian country is the second among the 160 export markets of the Brazilian product. Between January and October, this year was the destination for 10.9% of the total exported by the country, a total of 364 thousand tons, 9% higher than in the same period 2017.