Brazil Seeks Safeguards Against Dairy Imports from Argentina and Uruguay
The dairy sector within Mercosur is facing a critical challenge as Brazil seeks to limit imports of milk powder and cheese from Argentina and Uruguay. On May 12, the Conselho Paritário Produtores/Industrias de Leche de Rio Grande do Sul (Conseleite RS) urgently approached the Brazilian federal government, demanding emergency measures to curb these imports. The request coincides with the concluding weeks of Brazil's investigation into alleged dumping practices initiated in 2024.
The Brazilian authorities argue that the local dairy industry is under threat due to the influx of foreign dairy products, which they claim are being sold at unfairly low prices, destabilizing the competitive balance. According to Conseleite RS, 65,000 tons of milk powder and 18,200 tons of cheese entered Brazil between January and April 2026, equivalent to 11 days of national production or 60 days of production in Rio Grande do Sul.
Kaliton Prestes, a coordinator at Conseleite, emphasized that without safeguards to prevent products from entering at prices below the local average cost, the Brazilian dairy industry will continue to face challenges. However, both Argentina and Uruguay have dismissed the accusations of dumping. Uruguayan trade groups, in communication with Brazil's embassy, argued that their export prices follow global trends and often exceed New Zealand benchmarks.
Furthermore, they pointed out potential methodological errors in Brazil's comparison of imported milk powder with domestic fluid milk, which they argue contradicts World Trade Organization (WTO) norms. As the deadline for additional information submissions to Brazil's Department of Commercial Defense (Decom) has passed, preliminary indications from Decom have raised concerns among regional exporters.
Uruguay has already initiated formal consultations with the WTO, preparing for potential international arbitration if Brazil imposes antidumping duties or quantitative restrictions. The final resolution, expected by the end of May, will significantly influence the dairy sector's trade dynamics for the remainder of the year.
