Brazil implements safeguards against Chinese imports

27/06/2005

The Brazilian Ministry of Development, through CAMEX (the Chamber of Foreign Trade) has approved the implementation of safeguards against imports from China. The measures will allow Brazilian economic sectors that feel threatened by such imports to ask for safeguards in the form of quotas or import taxes to be imposed.
Until now, Brazil has had no specific protection mechanisms against imports from China as the country’s general safeguards for specific products were not applicable to a single country. However, Brazil will now be able to impose barriers on Chinese products alone on any products that are likely to jeopardise the performance of the domestic industry in that sector.


The Ministry announced that any import limits will be regulated by two decrees, one just for textiles and valid until 2008, and another one covering all other products and valid till 2013.

 

However, safeguards will not be automatic and affected industrial sectors must file a claim with the Department of Commercial Protection before limit safeguards can be imposed, a process that could take between two and eight  months. “The industrial sectors will have to prove that they are being affected by the increase in imports from China," said Ivan Ramalho, Foreign Trade Secretary,

Between January and April 2005 overall imports from China grew 53% compared with the same period in 2004. The largest growth was seen in textile goods (+148%) and footwear (+180%).

“The footwear industry will have to file a claim as soon as possible because the damage is already serious enough," said Élcio Jacometti, president of Abicalçados - Brazilian Association of Footwear Manufacturers.