The main unions of the Uruguayan dairy industry sent a letter to the Brazilian ambassador in Montevideo, Marcos Leal Raposo Lopes, in which they express “deep concern” about the investigation opened in Brazil into alleged dumping practices in exports of powdered milk from Argentina and Uruguay.
In the letter, the organizations declare that they “emphatically reject the existence of dumping practices” and affirm that “the export prices of milk powder from our country… are not only aligned with international export references from New Zealand, but they are always located above them”, an argument that, according to the senders, contradicts the hypothesis of unfair competition.
The producers also highlight the predominant cooperative nature in the Uruguayan dairy industry as a factor that reinforces “the nonexistence of dumping practices,” given that the producers themselves participate directly in the results of the business and, therefore, in price and volume decisions.
In addition, the unions question the methodology applied in the Brazilian research, warning that it may not comply with the criteria of international regulations. and that “it is not based on affirmative, objective and verifiable evidence.” They demand that any analysis consider the particularities of the sector, regional costs and the local marketing structure.
The letter seeks, in short, to urge the Brazilian authorities to review the approach of the investigation and avoid measures that affect regional trade. while the unions and chambers of the sector await additional technical information and maintain their willingness to provide data that supports the transparency of Uruguayan exports.
