Brazilian frozen chicken will be allowed into South Africa without paying extra tariffs. The country suspended, for 12 months, the anti-dumping duties that had been in force since December last year.
Until now, exports of the Brazilian product were subject to extra tariffs ranging 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 tariff suspension was announced after months of negotiations between governments of South Africa and Brazil – which denies the allegations.
“The Brazilian government will continue to pay attention to the case, expecting that the temporary suspension of anti-dumping tariffs will become definitive”, according to a statement from the Ministries of Economy and Foreign Affairs.
Last year, Brazilian exports to South Africa exceeded USD 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”, says the statement.