Brazil to Announce Decision on Dairy Dumping Allegations Against Argentina and Uruguay

The Brazilian Department of Commercial Defense (Decom/MDIC) is set to issue a confidential report on May 18 regarding the investigation into alleged dumping of powdered milk imports from Argentina and Uruguay. This report will inform the final decision by Brazil's Chamber of Foreign Trade (Camex) in early June.

The investigation was initiated following complaints from the Brazilian Confederation of Agriculture and Livestock (CNA), which reported preliminary dumping margins over 60% for several exporters from both Argentina and Uruguay. Conaprole, Uruguay's leading dairy cooperative, has submitted a defense against these preliminary findings, aiming to prevent the imposition of countervailing duties that could effectively shut down the regional market.

The decision process will follow a strict timeline: the final technical determination by Decom will be reviewed by the Committee on Commercial Defense (CDC/Camex) before a final decision is made in June. The outcome is crucial as Brazil is the primary market for regional powdered milk, and an unfavorable ruling could complicate Mercosur integration.

Brazilian producers are advocating for protective measures to safeguard domestic profitability, while Uruguayan and Argentine industries argue that their pricing reflects productive efficiency rather than unfair pricing strategies.