Garlic producers complain about imports from China

Brazilian producers complain about losses caused by Federal Court injunctions that exempt garlic imported from China from taxes. Representatives participated in a public hearing at the Agriculture, Livestock, Supply and Rural Development Committee of the Chamber of Deputies.

Since 1996, garlic imported from China, the world's largest producer with 80% of the total, has been taxed in Brazil after identifying the practice of selling at prices below cost to ward off competitors. In 2013, the value of this anti-dumping duty was updated to US$0,78 per kilogram, valid for five years. However, importing companies obtained injunctions in Brasília and Rio de Janeiro that prevent this charge.

For Brazilian producers, the majority of whom are family farmers, the cost of producing a box with ten kilos of garlic is R$66. Without paying the anti-dumping duty, the same quantity of product imported from China can be sold for R$ 50.

Rafael Jorge Corsino, president of the National Association of Garlic Producers (Anapa) and the National Association of Onion Producers (Anace), became exalted during the debate. “If we don’t do anything against this culture of injunctions, garlic production in Brazil will end.”

According to Corsino, in the period between 2010 and 2016, when there was greater rigor with imports, Brazilian production jumped from 20% to 45% of the total consumed in the country, but is currently at risk of regressing in the face of what he considers unfair competition. Local production, located in the South, Southeast and Central-West regions, is around 130 thousand tons per year.

Tax loss
Marcus Vinicius Vidal Pontes, Undersecretary of Customs Administration at the Federal Revenue Secretariat of Brazil, said at the public hearing that, in 2017, the anti-dumping duty was charged on 73 thousand tons of imported garlic – in addition to China, the product comes from Argentina and Spain – in the amount of R$153 million.

Deputy Valdir Colatto (PMDB-SC) estimated that, as 170 thousand tons were imported last year, Brazil failed to collect just over R$200 million from the anti-dumping tax. In addition to this tax loss, said Colatto, competition from Chinese garlic exposes 4.000 families in the country – there are also 100 medium and large producers.

Present at the debate, Itamir Gasparini, Secretary of Agriculture of Frei Rogério (SC), warned of the impact on producers' profitability. In Santa Catarina, there are 2.047 hectares cultivated with garlic, divided between 1.500 families. “There are those who are thinking about selling their land, somewhere between 1 and 1,5 hectares, to pay off their debts with banks,” he said.

Ongoing measures
Government representatives stated that measures are already underway to tackle the problem. The Ministry of Industry, Foreign Trade and Services published resolutions between 2016 and 2017 determining that all imported garlic must be taxed. According to the Federal Attorney General's Office, this will allow it to act in the Federal Court and in the future seek to revoke the injunctions still in force.

Clóvis Volpe, legal director of the National Association of Garlic Producers, also informed that the entity filed an Allegation of Non-Compliance with Fundamental Precepts (ADPF) in the Federal Supreme Court, in order to try to prevent, in a broader way, the granting of injunctions. ADPF 177, from 2009, is being analyzed by minister Roberto Barroso.

“The problem has been raised. Everything that was said is available on the internet for everyone, it is necessary to publicize and demand the results from the authorities”, concluded Colatto, one of those who suggested the debate. The public hearing was also proposed by deputies Evair Vieira de Melo (PP-ES) and Heitor Schuch (PSB-RS).