SÃO PAULO – China announced plans to impose a temporary anti-dumping penalty on imports of broiler chickens produced in Brazil following an investigation by the government that found the domestic broiler industry had been damaged by the imports. The measure will impact products made by JBS S.A. and BRF S.A.

Reuters reported that firms in China that purchase Brazilian chicken will be required to pay deposits ranging from 18.8 percent to 38.4 percent of the value of their shipments.

The ruling is provisional, and a final decision won’t be announced until August. However, the Brazilian Association of Animal Proteins (ABPA) protested the decision saying in a statement “…there is no causal link between Brazilian poultry exports and possible local market situations.”

ABPA added that the proposed anti-dumping penalty “…is a step back in the good commercial relations built by Brazilians and Chinese throughout this decade…” as well as in the partnership between the two countries aimed at guaranteeing China’s food security.

In 2017, Brazil exported to China 391,400 tons of chicken meat which represents 9.2 percent of all chicken meat exports from Brazil that year.