China and Brazil resolve commercial dispute over chicken meat

22 January 2019

China’s Ministry of Commerce has accepted a proposal from Brazilian poultry exporters to end a dispute over dumping, a lawyer at MPA Trade Law told Reuters on Monday.

Cláudia Marques, a partner at the law firm representing Brazilian exporters, also said that China’s decision to accept the proposal was communicated to the parties involved through a report sent by the Ministry of Commerce.

The agreement on the proposal under which minimum prices for exports to China would be established in exchange for the closure of an investigation into dumping which began in August 2017 will enter into force by 18 February, bringing an end to formal procedures.

China determined in June 2018 that importers of chicken meat produced in Brazil would have to deposit between 18.8% and 38.4% of the value of the product due to “dumping”, or sale below price of production.

Under the proposal now agreed, Brazilian exporters undertake to sell to China at prices not lower than those set out in the document, in a process known as the minimum price undertaking. (macauhub)