Now open: China initiated safeguard investigation on beef imports

In brief

China’s Ministry of Commerce (known as “MOFCOM”) initiated a safeguards investigation on December 27 on beef imports. The official notice of initiation is available at the following link.

Safeguards are imposed against all origins and not on specific countries. The duties may be imposed by raising tariffs or imposing quotas and can last from 2 (two) to 4 (four) years. The measure can remain in force for up to 10 (ten) years in exceptional circumstances. Provisional measures may be imposed during the investigation.

The product under investigation is beef (meat of bovine animals). In other words, beef products from live cattle that have been slaughtered and processed, including fresh, chilled or frozen beef, whole or half-headed, on the bone and boneless.

Safeguard investigations aim to identify the existence of a sudden and intense surge in imports, regardless of the country of origin. It is not necessary to demonstrate the existence of unfair trade practices, but only the existence of serious injury or threat thereof resulting from the imports’ surge. The request was filed by 10 meat producers’ associations, which formed the Chinese domestic industry.

The investigation covers the period from 01 January 2019 to June 30 2024. The investigation is expected to last approximately eight months, but it may be extended.

According to Chinese import statistics, China’s biggest beef exporters were Brazil (43%), Argentina (19.25%), Uruguay (10.03%), Australia (8.27%), New Zealand (7.53%) and the United States (5.70%) in the first semester of 2024.

The Brazilian government issued a joint statement by the Ministries of Agriculture and Livestock (MAPA), Development, Industry, Trade and Services (MDIC) and Foreign Affairs (MRE), mentioning that the Government will work together with the export sector to demonstrate that Brazilian beef exported to China does not cause any injury to the Chinese industry and is an important factor in complementing local Chinese production.

Relevance of stakeholder participation

Interested parties will have 20 days from the initiation of the investigation to qualify for the process in order to contribute to the investigation, i.e. until 16 January 2025.

The participation will involve submitting responses to questionnaires, eventual participation in hearings, and submitting statements demonstrating that Brazilian exports are not the cause of the alleged serious damage to the Chinese meat industry.

Although this type of investigation does not result in individual margins per exporter, the participation of exporters is decisive in terms of presenting their point of view on the case records and contesting the Chinese industry’s arguments with which they may disagree. Exporter’s participation may significantly affect the outcome and magnitude of eventual safeguard’s measure.

More details

• Petitioners: China Animal Husbandry Association, Jilin Animal Husbandry Association, Liaoning Animal Husbandry Association, Guizhou Cattle and Sheep Industry Association, Sichuan Animal Husbandry Association, Hebei Animal Husbandry Association, Inner Mongolia Animal Husbandry Association, Shandong Animal Husbandry Association, Henan Beef Cattle Industry Association, and Xinjiang Uygur Autonomous Region Animal Husbandry and Veterinary Medicine Association;
• Investigated products: beef (meat of bovine animals), i.e. beef products from live cattle that have been slaughtered and processed, including fresh, chilled or frozen beef, whole or half-headed, on the bone and boneless;
• Tariff codes: 02011000, 02012000, 02013000, 02021000, 02022000 and 02023000.