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Brazil Considers WTO Challenge Against Certain Mainland Chinese Trade Remedy Measures

Brazil’s Foreign Trade Chamber (CAMEX) has greenlighted a study to determine whether there are sufficient legal elements to pursue a World Trade Organisation dispute settlement challenge against mainland China’s safeguard measure on sugar imports as well as its antidumping measure on certain poultry products from Brazil. Established in May 2017, the safeguard measure on sugar imposes an additional 40 percent tariff on imports of subject merchandise, yielding an overall import duty liability of 90 percent. This has ostensibly resulted in an 86 percent decline in Brazil’s sugar exports to the mainland, from 2.5 million tonnes in 2016 to 334,000 tonnes in 2017. CAMEX notes that a preliminary assessment has yielded strong evidence of a potential violation of WTO rules.

On 9 June, mainland China imposed preliminary AD duties ranging from 18.8 percent to 38.4 percent on fresh, chilled or frozen chicken from Brazil, and Brazilian authorities believe this AD duty investigation has been fraught with inconsistencies. The mainland accounts for ten percent of total chicken exports by Brazil, totalling some US$800 million per year.

 

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