Brazil Adopts China Import Tariff on Eve of Visit

Brazil said on April 05, 2011 it will apply import tariffs on specific goods from China and the United States, the latest measures to help stem a flood of cheap imports that is eroding the country's trade balance.

The move comes only days before President Dilma Rousseff is due to travel to China, where she wants to discuss what Brazil considers a lopsided trade balance with the Asian giant.

The latest measure is part of a broader effort by Rousseff, who took office on Jan. 1, to get tough on imports, particularly those from China.

Brazil will slap an anti-dumping tariff of $4.1 per kilogram (2 lb) on several Chinese-made synthetic fibers, according to a statement by the industry and trade ministry.

The levy will be valid for five years and came in response to a demand by Brazil's textile industry, the ministry said, without providing additional detail.

Dumping is when a manufacturer sells goods abroad below their production cost or domestic price.

The government also wants tighter supervision by customs officials to check rising contraband of Chinese products.

Industry leaders say China's cheap currency and export subsidies constitute unfair trade.

But a rising tax burden and low productivity at home are equally to blame for the falling competitiveness of Latin America's largest economy, analysts say.

Brazil will also apply a provisional anti-dumping tariff for up to six months on a solvent called n-Butanol sold by U.S. chemical companies, including Dow Chemical Co (DOW.N) and Eastman Chemical Co (EMN.N).