Brazilian frozen chicken will once again be allowed to enter South Africa without paying extra duties. The African country has suspended for 12 months the antidumping tariffs in force since December.
Until now, frozen chicken from Brazil was imported into the African country with extra tariffs of 6 to 265.1 percent, plus the import tax. The South African government argued that the Brazilian product was harming local producers.
Authorized by the World Trade Organization, antidumping tariffs are justified when a country exports goods below their cost price. The practice is seen as unfair competition under international law.
Brazil’s ministries of Economy and Foreign Affairs denied the accusation. In a joint note, the two stated they have maintained constant dialogue with the Brazilian companies investigated as well as with South African authorities, including the exchange of technical reports on dumping. “The Brazilian government will remain vigilant about the case in the hopes that the temporary suspension of antidumping tariffs will become definitive,” the text reads.
Last year, Brazilian exports to South Africa exceeded $1 billion, approximately 17 percent of which were exports of frozen chicken. “Brazil is a reliable and competitive supplier of chicken meat. Brazilian production plays an important role in ensuring food security in a number of markets, especially at a time of imbalance in international supply chains and generalized price hikes,” the statement concludes saying.
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