Possible WTO case: SA vs Brazil
By Mmatlou Kalaba
Posted on 08 November 2011
Brazil dumping chicken?
SA investigates possible dumping of poultry products by Brazil
South Africa is investigating possible dumping of chicken imports from Brazil. It is alleged that chicken from Brazil are sold in South Africa at a price lower than in the home market. The International Trade Administration Commission (ITAC) of South Africa confirmed that they are following such a case. Brazil is the largest supplier of poultry products in SA, providing more than two thirds of total poultry imports.
If ITAC finds that there is indeed dumping, then the possible action is to impose anti-dumping duties against Brazilian imports. The industry role players such as AFGRI, Astral Foods, Rainbow Chicken and other producers have indicated that they will support such action. According to the World Trade Organisation (WTO), there is no measure that SA can take against dumping with its Tribunal. The only remedy available for SA will be to apply anti-dumping duties, which are basically additional tariffs above the normal rates. However, if a case is brought against South Africa for taking such action, then the WTO will hear it. Brazil has threatened to go that route, should SA impose such duties against their imports. For more details please click here and here.