Brazilian frozen chicken will re-enter South Africa without paying extra tax. The country suspended, for 12 months, the anti-dumping tariffs that had been in force since December last year.
Until now, frozen chicken from Brazil entered the African country paying extra tariffs from 6% to 265.1%, in addition to the Import Tax. The South African government claimed that the Brazilian product harmed local producers.
Authorized by the World Trade Organization (WTO), the imposition of anti-dumping duties is justified when a country exports an item below cost price. Under international law, the practice is understood as unfair competition.
The Ministries of Economy and Foreign Affairs have denied the accusation. In a joint note, the two ministries informed that they maintained constant dialogue with the investigated Brazilian companies and with the South African authorities, including through technical manifestations related to the investigation of dumping. “The Brazilian government will remain attentive to the case in the expectation that the temporary suspension of anti-dumping tariffs will become definitive,” the statement said.
Last year, Brazilian exports to South Africa exceeded US$ 1 billion, of which around 17% corresponded to exports of frozen chicken cuts. “Brazil is a reliable and competitive supplier of chicken meat. Brazilian production is important to guarantee food security in different markets, especially in the current moment of imbalance in international distribution chains and a general rise in prices”, concluded the joint note.
