Gecex (Executive Management Committee of the Chamber of Foreign Commerce) decided to postpone the public interest assessment process related to the anti-dumping investigation into Brazilian imports of powdered milk from Argentina and Uruguay, prolonging the uncertainty regarding the possible application of tariffs against the product from the two Mercosur partners.
Currently, powdered milk enters Brazil tariff-free due to the free trade agreement between the countries.
Gecex’s decision was formalized in a resolution published this Monday (8), in the Official Gazette of the Union, keeping the effects of the decisions on May 28 suspended.
The committee recognizes the existence of dumping practices in milk powder exports from both countries to the Brazilian market, following an investigation conducted by the Department of Commercial Defense (Decom), linked to the Ministry of Development, Industry and Commerce (MDIC).
Despite this, the collegiate decided not to immediately apply anti-dumping duties and opened a public interest assessment to measure possible impacts of the measure on the Brazilian economy and those within the scope of Mercosur.
The investigation was opened in December 2024 following a request presented by the Brazilian Confederation of Agriculture and Livestock (CNA), which alleged unfair competition from imports of Argentine and Uruguayan milk powder.
During the investigation, government technicians identified dumping margins that exceeded 60% in some cases analyzed.
The postponement maintains the dissatisfaction of representative entities, which defend the immediate application of the tariffs, as is the case of Girolando (Associação Mineira de Criadores de Girolando).
The entity’s president, Alexandre Lacerda, warned the reporter that this is a historic claim from Brazilian milk producers, who have already faced years of low prices paid in the field, lack of motivation to continue in the activity and dissatisfaction with the entry of dairy products into the country, since the volume of milk manufactured in Brazil is sufficient to supply the national industry.
Brazil produces, on average, 35 billion liters of milk per year, highlighted the president.
The sector argues that imports have been putting pressure on prices paid to Brazilian livestock farmers and compromising the profitability of the activity.
Previously, the CNA took a position, claiming that Argentina and Uruguay accounted for around 90% of Brazilian imports of equivalent milk registered this year.
On the other hand, members of the government assess that the immediate application of anti-dumping duties could have effects on domestic prices and generate diplomatic tensions with Mercosur partners.
The public interest analysis was precisely the instrument adopted to consider these potential impacts before making a definitive decision.
With the extension, antidumping duties remain without effective collection until the evaluation is completed. Only after the completion of this stage will Gecex be able to decide whether to maintain, alter or revoke the measures approved against imports of powdered milk from both countries.
