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Brazil Introduces China Safeguard Procedure

Brazil Introduces China Safeguard Procedure

Write: Sanrevelle [2011-05-20]

The Brazilian government has introduced procedures for petitioning for safeguard measures against a range of goods imported from China, including textiles.

A specific textile safeguard will allow for suspension of Chinese imports for up to 200 days with the provisions lasting through to the end of 2008.

The Ministry of Commerce has included on its website, the necessary petition for apparel and textile manufacturers to complete should they feel they are being damaged by soaring imports from China.

Textile producers will need to establish grounds showing that higher imports of products from China are adversely affecting their output.

Once the petition is filed, the MDIC has until six months hence to finalise investigations.

During this time, China will be offered the chance to self-regulate its exports to Brazil restricting growth at 7.5 per cent per annum based upon a previous 12-month period.

Brazil is hoping to follow EU and US moves in forcing China to respond quickly to such strong measures in agreeing self-restriction.

Brazil has suffered a decline in MMF (man-made fibre categories) caused by both decrease in demand and a loss of market share from cheap Asian imports.

MMF yarn and fabric has fallen 11.8 per cent in June, 25.3 per cent in July, and 25.1 per cent in August, according to Brazilian data.