The number of Brazilian anti-dumping investigations
involving China is expected to rise over the next few years as
local companies become "more aware" of their trade defense
China is involved in
only one-third of the ongoing anti-dumping cases in the nation,
but its share is rising, Joseph W. Dorn and Christopher T.
Cloutier, from New York-based law firm King & Spalding LLP,
told AMM sister publication Steel First.
"If you see other
countries in Latin America, this share in Brazil is lower,"
Cloutier said, citing levels of about 50 percent in Peru and up
to 100 percent in Colombia. "The likelihood is that
Chinas (share of anti-dumping cases) will increase in
Dorn and Cloutier,
both partners in King & Spaldings International Trade
Practice Group, recently visited Brazil to present a study
commissioned by the countrys National Confederation of
Industry on Chinese industrial policies. The study focuses on
several sectors, including the steel industry, and outlines the
options available to Brazilian industries that are "harmed by
subsidized Chinese products."
Since 2009, China has
been Brazils largest trading partner. And while Brazil
increasingly imports value-added and high-technology goods from
China, its exports to the Asian nation are mainly limited to
primary products and low-value added goods destined for the
Chinese export-oriented manufacturing sector, according to the
More than 75 percent
of Brazils recent exports to China are commodities such
as iron, soybeans and oil, while Chinese companies have been
focusing on shipments of high value-added products to Brazil,
Brazilian imports of
iron and steel products from China stood at $1.83 billion in
2011, more than seven times the $25.8 million level seen in
2002, according to the study.
The rise in
anti-dumping cases in Brazil over the past couple of years
shows a "very clear trend" toward a more effective trade
defense area in the country, Cloutier noted.
This is particularly
true in steel, with local companies showing greater interest in
learning the tools to request dumping investigations.
"We have every reason
to believe that imports of Chinese steel will continue in
Brazil, as overcapacity makes steel very cheap in China," he
There are now five
anti-dumping investigations on steel imports in Braziland
all of them involve China.
The products being
analysed include heavy plates from China, South Korea, Ukraine
and South Africa; seamless pipe from China; welded austenitic
stainless steel pipe from China and Taiwan; austenitic
stainless cold-rolled coil from Germany, China, South Korea,
Finland, Taiwan and Vietnam; and non-grain oriented electrical
flat steel products from China, Taiwan and South Korea.
"The number of
countervailing duty investigations (against China) is expected
to increase (after December 2016)," Cloutier said, reffering to
the expiration of Chinas automatic recognition as a
non-market economy for anti-dumping purposes.
A version of this
article was first published in AMM sister publication Steel