Market Roundup: Complaints against Chinese dumping rise in Brazil

With imports on the rise, multiple sectors have urged the Brazilian government to take action against Chinese exporters deemed as predatory

Surge in trade defense complaints from Brazilian industry

In response to an influx of complaints — specifically concerning exporters from China — Brazil’s Foreign Trade Chamber (Camex) recently raised import tariffs on steel products, fiber optic cables, and sodium chlorite. Five new antidumping measures were also introduced, adding to around 150 trade defense policies already in place.

Driving the news. The Trade and Industry Ministry reported that complaints from Brazilian companies about trade practices surged in the first half of 2024, surpassing the total for all of 2023. Camex is also investigating 25 cases of alleged dumping, with China being the focal point of many of these probes.

The big picture. Brazil’s imports increased by 7.5 percent from January to mid-October 2024, reaching USD 212.3 billion, even as the Brazilian real declined against the U.S. dollar. China, Brazil’s top trading partner, accounted for a quarter of overall imports.

• Brazil is following the global protectionist trend. The current administration, with its focus on supporting local industries, has pledged to expand its use of trade sanctions to combat dumping

👉 Why it matters. Camex has been increasingly issuing temporary antidumping measures, which last six months and apply before investigations conclude. In 2024 alone, it issued six such measures to “reduce the damage that unfair competition caused to Brazilian industry,” compared to just seven in previous years combined.

• The government noted that many complaints in 2024 have led to new investigations rather than reopening past cases — signaling that new sectors, such as textiles,rubber, and chemicals, are seeking protection.

Zoom in: EVs: Brazil, the top buyer of Chinese EVs, plans to gradually hike EV import taxes from 18 to 35 percent by 2026. The domestic auto industry, however, is pushing for a faster timeline, arguing that Chinese products are flooding ports and driving up freight costs.

Chemicals: Camex increased tariffs on 30 chemical products from 10-12 percent to 20 percent in response to industry complaints. The sector is pushing for higher tariffs on 32 additional products, which are still under review.

Fiber optics: In October, import tariffs on fiber optic cables were raised to 35 percent following a complaint from Prysmian, the only complete fiber optics maker in Latin America. The company claims it faces “unfair competition” and risks having to shut down its factory.

Rubber gloves: In October, Camex issued a permanent antidumping measure, adding a surcharge of up to USD 33 per 1,000 units on imports of non-surgical gloves from China, Malaysia, and Thailand.

Steel: Import tariffs for several iron and steel products jumped to 25 percent in October, effective until May 2025. Brazil’s steel sector, facing a flood of cheaper Chinese products, says dumping threatens its survival.In one case, Camex imposed a temporary antidumping measure on metallic leaves used in food packaging, adding a surcharge of up to USD 341 per ton.

Yes, but … Critics argue these measures could drive up prices and spur inflation. Major food and beverage producers, such as JBS and Ambev, oppose the surcharge on metallic leaves, while plastics manufacturers resist increased chemical tariffs. Meanwhile, higher tariffs help the government raise revenue as it strives to meet fiscal targets.

• Rafael Ujvari, a tax compliance lawyer at Briganti Advogados, tells The Brazilian Report that many of these measures seem designed to offset recent tariff reductions on products such as polyester yarns and fertilizers.

https://brazilian.report/business/2024/10/26/complaints-against-china-dumping/