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 Trade News
Updated 3 hours ago The South African government needs to take urgent steps to address ongoing trade concerns – particularly the long-running dispute over antidumping duties on American chicken – before US lawmakers start drafting 2015 trade legislation, the US Embassy’s Minister...
Article contains comments
Updated 8 minutes ago 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...
Updated 58 minutes ago French energy company Total is seeking international arbitration over a tax disagreement with Uganda which could further delay crude oil production in the east African country. "Total E&P Uganda confirms that it has filed a request for arbitration before the...
Updated 1 hour 2 minutes ago The Independent Communications Authority of South Africa (Icasa) on Tuesday published the final Radio Frequency Spectrum Assignment Plan (RFSAP) for the International Mobile Telephony (IMT) Roadmap that was gazetted in November. The IMT Roadmap aimed to unlock the...
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
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...