Brazil targets Chinese fiber imports with hike in tariffs

Brazil is raising import tariffs on fiber optic cables and fiber optics for cable production in general, in a move targeted mainly at Chinese products.

The government will increase the current tariffs to 35% on both products from 11.2% and 9.6%. The 35% rate is the same as that applied by Mexico on imported fiber in April.

The measure will go into effect after it is published in the official gazette, which is expected to take place early next week, BNamericas has learned.

The Brazilian ruling is temporary and will initially only last six months. It was decided by the executive management committee (Gecex) of Brazil's foreign trade chamber Camex. Camex is subordinate to the country’s development, industry and trade ministry MDIC.

It specifically targets "fiber optic cables with external coating of dielectric material" and "optical fibers with a core diameter of less than 11 micrometers."

The Gecex document shows that the measure was taken in response to a request made by Prysmian Cabos e Sistemas do Brasil, the Brazilian subsidiary of the Italian multinational Prysmian.

“Prysmian is optimistic about the federal government’s decision, through the MDIC, to balance the fiber and optical cable market by increasing import tariffs on these products,” the company said in a statement.

“It is important to emphasize that, from the beginning, the company’s goal has been to reestablish an environment of sustainable competition, favoring a market where all players, regardless of nationality, compete on fair terms,” the company added.

Prysmian, in addition to manufacturers such as Furukawa and Cablena, has been calling for the imposition of anti-dumping measures against Chinese fiber, which the companies claim is illegally subsidized.

The Italian firm estimates that more than 50% of the fiber supplied to the Brazilian market is imported.

In Brazil, the group suspended plans to close its Sorocaba factory, the only one in Latin America dedicated to the full production cycle of fiber optics. 

That decision came after the Brazilian government opened investigations into dumping of Chinese optical cables and fiber optics.

The ruling now announced by Gecex is separate, although clearly related to those probes, but does not yet represent a definitive anti-dumping measure while the investigations continue.

“We reaffirm our commitment to continue developing innovations made by and for Brazilians. We believe that the government, through this decision, is signalling its intent to attract new players to Brazil, which is certainly aligned with the goals and plans encompassing Brazil's energy and digital transition,” Prysmian said in its statement.