China lifts anti-dumping tariff on Brazilian chicken

China has lifted the anti-dumping tariff on Brazilian chicken, the Ministries of Foreign Affairs and Development, Industry, Trade, and Services said. A joint statement states that the surcharge ceased to be in force on February 17, adding, however, that the Brazilian government had not been informed of it until Tuesday (Feb. 27).

Since 2019, the Chinese government has applied anti-dumping tariffs of 17.8 to 34.2 percent on Brazilian chicken, depending on the exporting company. In addition, 14 Brazilian meatpackers had signed a price commitment in which they were obliged to charge prices above the pre-established minimum, which resulted in a loss of competitiveness for Brazilian companies.

In the note, the two ministries said the favorable decision was the result of active coordination with Chinese authorities in various forums and the implementation of bilateral cooperation tools in 2023.

Even with the anti-dumping duties, poultry meat sales to the Asian country were on the rise. In 2023, Brazil is said to have exported $1.61 billion in poultry meat to China, up 19.7 percent from 2022.

Authorized by the World Trade Organization, anti-dumping duties apply when a country claims that a competitor is producing goods below cost price, which creates unfair competition with domestic products. In order to remove the surcharge, the sanctioned country must prove that companies are not exporting goods below cost.