Brazil initiates largest number of anti-dumping investigations, says WTO

A report released this Monday (Jul. 25) by the World Trade Organization (WTO) shows that from 2013 to 2015, 112 investigations were initiated in Brazil, 15% of the total registered for the other members. Brazil has also initiated the largest number of anti-dumping investigations during this period.

According to the WTO, the investigations do not necessarily lead to the imposition of trade-restrictive measures, but they may indicate a rise in restrictions. Dumping occurs when manufacturers export a product to another country at a price below the price charged in its home market. On the other hand, anti-dumping measures are ways to counteract the dumping margin, considered unfair, usually by charging extra import duty.

The report also indicates that trade barriers are being put up between the members and concludes that this is the moment to “resist to protectionist pressures." According to the document, signed by WTO Director-General Roberto Azevêdo, new trade-restrictive measures have increased from a monthly level of 15, when it was last measured, to 22 per month. The number refers to the period from October 2015 to May 2016, and it is the highest level since 2011. The survey has also concluded that the members are slow to remove trade-restrictive measures.

"Of the 2,835 trade-restrictive measures (...) recorded for its members since 2008 by this exercise, only 708, or 25%, had been removed by May 2016," reads the document. However, the report considers that from October 2015 to May 2016, the members implemented an average of 19 new measures per month aimed at facilitating trade.

Translated by Amarílis Anchieta