Jun 22, 2012
A game of chicken as Brazil takes South Africa to the WTOBack
© Reuse this
Some six months ago, South Africa imposed extra tariffs ranging from 46.6% to 62.9% (depending on the exporting company concerned) on whole chicken and chicken breast imports from Brazil, alleging that the Brazilian suppliers were dumping their products on the South African market. These tariffs were in addition to pre-existing tariffs of 5% on whole chickens and 27% on chicken breasts.
The Brazilian Ministry of Development has estimated that the South African measures are costing the Brazilian economy $70-million a year.
Brazilian chicken producers deny they are dumping products on the South African market and maintain that they are no threat to the South African industry. According to the Brazilian Chicken Producers and Exporters Association (acronymed to Ubabef in Portuguese), while Brazil accounted for 73% of South Africa’s chicken imports, Brazilian chicken represented only 15% of the chicken consumed in South Africa.
The WTO processes will start with an invitation to South Africa to discussions, which Pretoria must respond to within ten days. Thereafter, the two countries will meet at the WTO, in Geneva, during July. If the two countries cannot resolve their differences within 60 days, Brazil’s complaint will be referred to a WTO dispute resolution panel.
The Brazilians are confident that they can prove they are not dumping in the South African market. Both the Brazilian Embassy in Geneva and Ubabef are convinced that the dispute will be settled through negotiation, and not need to be sent to a panel.
The Brazilian Foreign Ministry does not believe that this action will damage the country’s relations with South Africa. The complaint to the WTO is seen by the Brazilians as an apolitical “technical case”.
Brazil is the biggest exporter of chickens and chicken meat in the world and its industry is targeting emerging countries to grow its market.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Agriculture News
Article contains comments
Updated 2 hours 39 minutes ago Irish Foreign Affairs and Trade Minister Charles Flanagan told media on Thursday that Ireland was well positioned to play a greater role in Africa, particularly in the aviation, pharmaceuticals and agricultural industries. Flanagan was this week leading a high-level...
Updated 2 hours 41 minutes ago The Lesotho Highlands Development Authority (LHDA) has appointed three consultants for work packages as part of Phase 2 of the Lesotho Highlands Water Project (LHWP). The contracts, worth a collective M40-million, were awarded to the SMEC-FMA joint venture (JV);...
Updated 2 hours 48 minutes ago JSE-listed Huge Telecom continued to grow its distribution capabilities during the year ended February 28, with the number of business partners increasing by 136, or 47%. Huge Telecom’s connectivity services, which were distributed mainly to small and medium...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...