Brazil contests South African chicken dumping surcharge

UBABEF, the Brazilian Poultry Association, is contesting the content of letters sent by the International Trade Administration Commission of South Africa (ITAC) to the Brazilian poultry industry which discuss “essential facts” regarding the application of provisionary dumping surcharges by the South African government on whole chicken and chicken part imports from Brazil.

In February of this year, the South African government applied provisionary dumping surcharges to Brazilian chicken. According to the Government Gazette of South Africa, these measures affected whole and boneless cut chicken exports, with surcharges of 62.93% and 46.59%, respectively. These surcharges are added to regular import tariffs, which are 5% for whole chickens and 27% for boneless cuts.

According to an explanation from the UBABEF President, Francisco Turra, it is likely that this recent publication will serve as the basis for a final determination by the South African government on whether to apply a definitive measure regarding the dumping investigation. This is why there is significant concern on the part of the Brazilian poultry industry in relation to the result of the document, which indicates that Brazil is practicing dumping.

“There are a series of problems in the ITAC study, from adjustments that were reported and verified, but that were not considered when calculating the nominal value and the export price, to the credibility of the import data considered for correct assessment of data that, frankly, do not exist. I find it odd that the ITAC is insistent on defending the indefensible,” he said further.

Turra also emphasised that the economic indicators for the South Africa’s agricultural poultry industry have not changed, even though the volume of chicken exports from Brazil has been drastically affected.

“What’s missing is analysis and information on other contributing factors to any damage caused to the domestic industry. In the publication, there is not enough depth for a concrete assessment. Based on this, I will insist that the Brazilian government take the measures needed to contest this decision at the World Trade Organization (WTO). We will go to the end to prove that we do not practice dumping in South Africa or in any other market where we operate,” he underscored.

Along these lines, the UBABEF President defends the stance that Brazilian exporters are merely fulfilling a need in the South African market.