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Francisco Negrao

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Francisco Niclós Negrão is a Partner at *Trench Rossi Watanabe, SP, Brazil office.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.”

In the realm of international trade, the anti-dumping instrument plays a crucial role in safeguarding domestic industries against unfair trading practices. Navigating the intricate landscape of anti-dumping procedures across various jurisdictions requires an understanding of each jurisdiction’s rules and processes. To help further that understanding, the Baker McKenzie global trade remedies team has put together a comparative table of anti-dumping procedures in five key anti-dumping jurisdictions: the European Union, the United States, Brazil, China, and Japan.

SECEX published on 11 August 2023 an official notice of initiation of a new sunset review investigation concerning the antidumping duties in force against Brazilian imports of nitrile rubber originated from South Korea and France (Circular No. 29, dated of 10 August 2023). The investigated product is used by the general industry, in the automotive industry, and in the segment of mineral oils, which require strength, as well as great resistance to heat and abrasion.

SECEX published on 31 July 2023 an official notice of initiation of a new investigation into possible resumption of antidumping duties applied (but immediately suspended) to Brazilian imports of ethanolamines, monoethanolamines and triethanolamine, from Germany.

The last sunset review concerning ethanolamines, decided by CAMEX Resolution No. 7/2019, resulted in a five year extension of the antidumping duties for imports originating in the United States and Germany. However, the antidumping duties applicable to the Brazilian imports from German were suspended due to the existence of doubts as to the probable future development of imports from this origin.

The Brazilian Secretariat of Foreign Trade published on 31 July 2023 an official notice of initiation of a new investigation against Brazilian imports of gloves used for non-surgical procedures from Malaysia, Thailand and China (Circular No. 27, dated 28 July 2023). The investigated product is mainly used for non-surgical medical, dental or veterinary procedures and is commonly classified in the sub-items of the Mercosur Common Nomenclature (NCM) 4015.12.00 and 3926.20.00.

The Brazilian Secretariat of Foreign Trade opened, on 22 June 2023, a new investigation to assess whether the Chinese government granted actionable subsidies to its national producers who exported fiber-optic cables to Brazil. The investigation may result in the imposition of countervailing measures and the consequent increase in the cost of Brazilian imports of fiber-optic cables for a period of five years. In parallel, there is another ongoing investigation into the alleged practice of dumping by Chinese manufacturers/exporters of the same product, which may result in the imposition of antidumping duties, further raising the cost of Brazilian importers.

The Secretariat of Foreign Trade, by means of Circular No. 22, of 13 June 2023, published on 14 June 2023, opened an antidumping sunset review concerning Brazilian imports of welded steel pipes of austenitic stainless steel originated from Malaysia, Thailand, and Vietnam.
The duties remain in force throughout the investigation, and they may be renewed for another five years at the end of the proceeding.

The Secretariat of Foreign Trade of the Ministry of Development, Industry and Trade and Services by means of Circular No. 12, published on 10 April 2023, set a 30-day deadline (extended for additional 30 days by means of Circular No. 14, published on 27 April 2023) to gather contributions from the civil society regarding the draft ordinance that provides for new procedures for the assessment of public interest in the context of trade defense measure.

The United States is one of the most active countries in investigating so-called “unfair pricing” in the form of dumping or subsidization by foreign countries. In the past three years, the United States has initiated five investigations against imports from Brazil, having very recently initiated a case involving brass rods. Brazilian producers/exporters should be aware of the US activity in the antidumping and anti-subsidy space and, where there is a risk of such an action targeting a company’s exports from Brazil to the United States, consider taking steps to prepare in advance and implement a global trade remedies compliance, prevention, and action strategy.

On 28 March, the Brazilian Secretariat of Foreign Trade, through Ordinance No. 10 dated 27 March 2023, opened a sunset review concerning the antidumping duty in force on Brazilian imports of metallic magnesium from Russia. At the end of the review, the current antidumping duty may have its term extended for another five years.

The Brazilian Secretariat of Foreign Trade issued on 8 March 2023 a new ordinance that renders the assessment of public interest (API) an optional proceeding in original dumping and subsidy investigations. Under the previous regulation, the API was mandatory in such original investigations and thus initiated ex officio by the Brazilian Department of Trade Defense, together with the opening of every new investigation.