In a pivotal move, China has opted to lift the anti-dumping tariffs previously imposed on Brazilian chicken meat exports, effective as of February 17, 2024. This decision, jointly announced by the Ministries of Foreign Affairs and Development, Industry, Trade, and Services, has swiftly set gears in motion within the poultry industry.
Since 2019, China had applied anti-dumping tariffs, ranging from 17.8% to 34.2%, on Brazilian chicken exports, impacting numerous exporting entities. Moreover, 14 Brazilian poultry processing plants had consented to a “price commitment,” agreeing to maintain prices above a predetermined minimum, thereby affecting their competitiveness.
The favorable outcome of lifting these tariffs is attributed to intensive negotiations with Chinese authorities across various echelons and the execution of bilateral cooperation mechanisms in 2023. Despite the tariff hurdles, Brazilian poultry exports to China had showcased robust growth. In 2023 alone, Brazil exported poultry valued at $1.61 billion to China, marking a notable 19.7% surge compared to 2022.
REACTION OF THE BRAZILIAN POULTRY INDUSTRY
The Brazilian Animal Protein Association (ABPA) greeted with optimism the revelation from the Ministry of Development, Industry, and Commerce (MDIC) regarding the cessation of the anti-dumping measures imposed by the Chinese Government. These measures had entailed provisional tariffs of up to 34.2% on chicken meat exports from Brazil. ABPA highlights this development as a significant testament to the robust relations fostered between the governments of Brazil and China, as well as between the private sectors of both nations.
Brazil maintains its status as the globe’s foremost exporter of chicken meat, with China emerging as its second-largest consumer and primary export destination. In the preceding year, Brazil dispatched over 679,000 tons of chicken meat to China, translating to a trade value surpassing $1.9 billion.
The concept of dumping, regulated by the World Trade Organization, pertains to the sale of products below their production costs. To rescind tariffs, the affected country must demonstrate the absence of goods being exported below cost. The elimination of these supplementary tariffs augurs well for Brazilian chicken exports, heralding fresh opportunities for domestic producers.
In acknowledgment of the tariff lift, the joint statement issued by the Ministries of Foreign Affairs and Development, Industry, Trade, and Services underscored its favorable implications for the Brazilian poultry sector and the economic-commercial rapport between Brazil and China.
This development signals a triumph for Brazilian poultry farmers and underscores the significance of international trade collaboration. As the global appetite for poultry experiences an upward trajectory, the removal of tariffs sets the stage for heightened collaboration between two major stakeholders in the chicken industry.
