Brazil anti-dumping tariffs rise sharply

BRASILIA (Reuters) - The Brazilian government has sharply increased the use of anti-dumping tariffs, mostly on Chinese and Indian products, as the country's manufacturers struggle with rising imports fueled by a strong currency.

Brazil is one of the world's fastest-growing consumer markets and one of the largest for automobile and television manufacturers. But a currency that has gained more than 30 percent in the past two years and more than 100 percent since 2002 has eroded the international competitiveness of some domestic industries.

In the 12 months through July, Brazil imposed anti-dumping taxes in 20 cases, up from only five during the previous period, according to data from the Ministry for Industry and Trade obtained by Reuters.

"With such a currency appreciation, companies are desperate and will look for any means possible to halt the flood of imports," Mario Marconini, head of international trade negotiations with the influential Sao Paulo state industry federation, told Reuters.

Trade and Industry Minister Miguel Jorge said in an interview earlier this month that Brazil's entrepreneurs were becoming more knowledgeable of international trade regulations.

Under rules of the World Trade Organization, a country can apply anti-dumping import tariffs when it can prove imported goods were sold at below-market prices and caused damage to domestic industry.

The government has imposed import duties on Chinese hair combs, drill bits and a $3.56 duty on each padlock imported from China. From March this year, and for the next five years, industrial dye imports from Germany have a $502 surcharge per metric ton.

Most of the safeguards are against imports from low-cost manufacturers India and China, which are Brazil's allies in the Doha round of global trade negotiations. The round foundered last month on a proposal for a safeguard to help farmers in poor countries withstand a flood of imports.

Brazil's government has also targeted countries in Latin America and imposed tariffs on cement from Mexico and Venezuela as well as minerals from Argentina.

The trend for more safeguards looks set to continue. The ministry received 52 requests for anti-dumping tariffs from industries over the past year, up from 17 in the 12 months through July 2007.

Brazil has also become more active in bringing trade disputes to the WTO and won high-profile cases, including one over U.S. cotton subsidies.

"Brazil doesn't compare yet to the United States, the European Union or Australia, who are experts in applying anti-dumping tariffs but there is definitely growing awareness," said Marconini.

(Editing by Stuart Grudgings and Peter Cooney)