China will slap duties as high as 38.4% on imports of broiler-chicken products from Brazil, China’s Ministry of Commerce has announced, following the conclusion of an investigation which accuses Brazilian suppliers of dumping in China’s domestic market.
The tariffs come at a time when China is looking to increase its intake of US agricultural products, granting the possibility that Chinese demand may switch from Brazil – its current largest supplier selling $876 million worth of chicken each year – to American farmers instead, although a safety ban from bird-flu concerns still stands on US produce.
Brazil’s business with China is not expected to cease following the tariffs, one industry source told Bloomberg, but shipment growth may be inhibited. The source added that Brazilian companies are considering their options, which at the minute include a minimum price deal and possibly filing a complaint that the WTO.