China has announced that it will exempt 14 Brazilian companies, including BRF and JBS and considered to be the world’s largest suppliers of chicken meat, from anti-dumping taxes.
The list of companies was excluded from taxes as part of a “price commitment” agreed between the two sides.
The exemptions are the result of months of negotiations between Brazilian poultry producers and China to resolve restrictions in place since 2017.
China has moved to charge taxes of between 17.8% and 32.4% on all Chinese imports of Brazilian chicken meat over the next five years.
Brazil is the world’s largest meat exporter and the largest foreign supplier to the Chinese market.
The decision came after Chinese chicken prices hit records as domestic supplies rose.
China has banned imports of breeding birds from many major suppliers because of outbreaks of bird flu.
China is the second largest producer and consumer of chicken in the world.
Brazilian exports of chicken to China are expected to increase by about 10% in 2018 compared to 2017.
Brazil mainly exports chicken feet, legs and wings to China.
Competition has been increasing since China opened the market in 2018 to imports from Russia and also suspended an import ban on Thailand. (macauhub)