China to exempt some Brazilian chicken importers from anti-dumping tariffs
- Exemptions for 14 importers include two world market leaders as long as sales are set above undisclosed floor price
China will exempt 14 Brazilian firms, including market leaders BRF and JBS Group, from anti-dumping tariffs on imports of chicken products, provided their sales are made above an undisclosed floor price.
The exemptions followed months of negotiations between Brazilian chicken producers and China, as Brazil sought to resolve an anti-dumping investigation that began in August 2017. Brazil is the world’s leading exporter of chicken and the biggest overseas supplier to China.
A preliminary determination in June last year placed duties of between 18.8 per cent and 38.4 per cent on all of China’s imports of Brazilian broiler chickens.
Under a final decision issued by the Ministry of Commerce on Friday, Beijing will maintain tariffs of between 17.8 per cent and 32.4 per cent on imports from February 17 for five years.
However, some companies will be excluded from the tariffs as part of a “price undertaking” agreed between the two sides, and reported by Reuters last month. The agreement set minimum prices for sales to China, but those were not published on Friday.