In a significant development for international trade relations between Brazil and China, the Chinese government has chosen not to renew the previously imposed tariffs on Brazilian poultry products. These tariffs, implemented in 2019 to address concerns over "dumping," were set at a range between 17.8% and 34.2%. Dumping refers to the practice where a country exports a product at a price lower than the price it normally charges on its own home market, which can undermine local industries in the importing country. In response to these tariffs, over a dozen Brazilian firms had agreed to "price commitments" with the Chinese government, aiming to maintain their export prices above a certain threshold to avoid the imposition of tariffs.
However, these measures were seen as detrimental to the competitiveness of Brazilian poultry in the vast Chinese market. With the expiration of these tariffs on February 17, the import duty on Brazilian poultry products to China has effectively been reduced to zero. This decision marks a pivotal shift, potentially bolstering the competitiveness of Brazil's poultry exports to China, and may pave the way for new Brazilian exporters to enter the Chinese market.
Brazil's status as the world's leading exporter of poultry, combined with China's position as the second-largest consumer of poultry and the top buyer of Brazilian poultry, underscores the significance of this development. The removal of the anti-dumping measure is expected to have a positive impact on Brazil's poultry industry, fostering growth, increasing revenue, and contributing to the country's economic development. The Brazilian government, alongside industry stakeholders, views this decision as an opportunity to strengthen trade ties with China, enhance market access, and ensure a more stable and prosperous future for Brazilian poultry exports.