Mercosur Meat Surge Sparks Controversy in China
Chinese farmers and meat industry associations are complaining about the surge in foreign beef imports and the Ministry of Commerce has promised an investigation into the situation, according to Beijing government sources.
However the investigation is likely to take some eight months, but may be extended under special circumstances, according to a statement on the ministry’s website.
Any safeguard measures taken by the world’s biggest beef buyer can be expected to hurt top exporters and trade partners of China such as Brazil, Argentina and Uruguay, Mercosur block partners, and Australia.
Chinese Imports surged between 2019 and mid-2024, dealing a blow to the domestic industry, groups representing the animal husbandry sector from several top producing regions said the petitioners. China’s beef producers are struggling with huge losses after local prices plunged to multi-year year lows due to oversupply and sluggish consumption.
The latest investigation and any likely action could potentially hurt farmers and producers in Brazil, which accounts for almost half of China’s total beef imports. Even though Brazil has embraced closer ties with Beijing, it has also pushed back against a perceived deluge of cheap exports from China.
Brazil imposed new tariffs on various products from China and other Asian nations in October, including a duty increase on fibre optics and cables, iron and steel products, and electric vehicles.
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