China recently enacted a momentous decision by lifting the previously imposed anti-dumping tariff on Brazilian chicken meat. This monumental resolution, disclosed jointly by the Ministries of Foreign Affairs and Development, Industry, Trade, and Services, took effect on February 17, 2024. Though the Brazilian government received official notification only recently, the ramifications are already resonating throughout the poultry industry.
Since 2019, China had imposed anti-dumping tariffs ranging from 17.8% to 34.2% on Brazilian chicken exports, impacting numerous exporting entities. Furthermore, 14 Brazilian poultry processing facilities had acquiesced to a “price commitment,” consenting to uphold prices above a predetermined threshold. This commitment directly impinged upon their competitiveness.
The notion of dumping, wherein products are vended below cost, is regulated by the World Trade Organization. To rescind tariffs, the affected nation must demonstrate the absence of exporting goods below cost. The elimination of these supplementary tariffs augments Brazilian chicken exports and unveils novel opportunities for other domestic producers.
In response to the tariff repeal, the joint declaration from the Ministries of Foreign Affairs and Development, Industry, Trade, and Services underscored its salutary impact on the Brazilian poultry sector and the economic-commercial nexus between Brazil and China.
This development constitutes a triumph for Brazilian farmers and underscores the significance of international trade collaboration. As the global appetite for poultry continues to escalate, the removal of tariffs lays the groundwork for enhanced cooperation between two pivotal stakeholders in the chicken industry
The favorable decision to rescind the tariffs was the culmination of intensive negotiations with Chinese authorities across various echelons and the operationalization of bilateral cooperation mechanisms in 2023. Despite the imposition of tariffs, Brazilian poultry exports to China had witnessed substantial growth. In 2023, Brazil dispatched poultry worth $1.61 billion to China, marking a 19.7% surge compared to 2022.
The Brazilian Animal Protein Association, ABPA, welcomed the news disseminated by the Ministry of Development, Industry, and Commerce, MDIC, regarding the cessation of the anti-dumping measures undertaken by the Chinese Government, which had instituted provisional tariffs of up to 34.2% on chicken meat exports from Brazil. ABPA asserts that this development serves as a testament to the robust rapport forged between the governments of Brazil and China, as well as between the private sectors of both nations.
Brazil holds the prestigious position of being the foremost exporter of chicken meat globally, with China emerging as its second-largest consumer and principal export destination. In the preceding year, Brazil dispatched over 679,000 tons of chicken meat to China, totaling more than $1.9 billion in trade.
