SHANGHAI – China on Friday imposed anti-dumping duties on chicken imports from Brazil but exempted 14 firms in exchange for a price undertaking, said the ministry of commerce on Friday.
The tariffs – ranging from 17.8 percent to 32.4 percent – will come into effect on Feb. 17 and will be in place for five years, the commerce ministry said in a statement.
It added that the tariffs were introduced to protect domestic producers from unfair competition from Brazilian firms.
The ministry reached the decision to exempt the 14 firms after months of negotiations with Brazilian chicken producers, and after the firms offered an acceptable “price undertaking.”
The ministry said that it exempted the firms from the tariffs on condition they export to China at prices not below the set minimum prices.
Brazilian chicken imports are the largest source of frozen chicken meat in China and constitute more than 50 percent of the chicken consumed in China.
The new measure was announced after an anti-dumping investigation on chicken from Brazil was launched, following reports that it had caused substantial damage to domestic suppliers.
The investigation began in Aug. 2017 and preliminary results were announced on June 8, 2018.
The investigation had recommended placing duties of between 18.8 percent and 38.4 per cent on all of China’s imports of Brazilian broiler chicken.
The final tariffs were announced only after additional investigation was conducted by the authorities.
The Brazilian firms, who have been exempted from the tariffs are BRF and JBS, which are the world’s largest meat exporters, and Copacol, Consolata, Aurora Alimentos, Bello Alimentos, Lar, Coopavel, Sao Salvador Alimentos, Rivelli Alimentos, Goncalves and Tortola, Copagril, Vibra and Kaefer.
China, the world’s second-largest producer and consumer of chicken, had fully opened its market to chicken from Brazil in 2008 after intense negotiations.
The country, which had imposed health restrictions on the Brazilian product, already imported non-processed chicken from Brazil, but it came through Hong Kong.
The measure against Brazilian chicken imports come after Chinese poultry prices had recorded a record high late last year.