Wednesday, 24 August 2016 by Thomas Muskett-Ford
Azevedo Sette Advogados and Nasser Sociedade de Advogados have helped packaging manufacturers in Bahrain and Peru beat off antidumping allegations in Brazil, in a rare case based on threat of material injury.
The Brazilian Secretariat of Foreign Trade ruled late last month that JBF Bahrain and Peru’s OPP Films were not dumping polyethylene terephthalate film in Brazil, ending a case launched by US-Brazilian counterpart Terphane in 2015. JBF hired Azevedo Sette, while OPP turned to Nasser. The petitioner relied on economic consultancy firm Lemme, Naidin, Gadelha e Maíniere.
Polyethylene terephthalate, which is a form of polyester film, is used in a wide variety of goods and products, such as food packaging and electrical insulation.
Terphane had argued that JBF and OPP were not yet undercutting local producers, but would cause injury in the near future. The petitioner cited Brazil’s existing antidumping measures against China, Egypt and India, arguing these duties would divert trade to Bahrain and Peru where polyester film makers would pursue similar pricing policies. However, the Secretariat of Foreign Trade found no threat of injury existed, because Brazil’s existing antidumping measures against polyester film producers would facilitate the recovery of local industry rather than harm it.
Antidumping cases based on threat of material injury rather than actual material injury are rare in Brazil. No petitions based on these grounds have been launched since Brazil passed revamped antidumping regulations in 2013, while only a handful of cases exist in local case law.
Threat of material injury cases are uncommon in Brazil for several reasons. Proving a future event will change commercial circumstances is far harder to prove than citing current evidence, notes Luiz Eduardo Salles of Azevedo Sette. “There is also an established tradition of cases based on material injury grounds in Brazil, so the industry has a tendency to rely more on these grounds in antidumping cases,” he adds.
Salles, who led the Azevedo Sette team, previously worked at BKBG. He moved to Azevedo Sette before that firm absorbed BKBG in June. While at BKBG, he worked alongside Nasser Sociedade de Advogados in a similar case involving the alleged dumping of bi-axially oriented polypropylene film from Colombia and Peru.
Counsel to JBF Bahrain
Azevedo Sette Advogados
Partner Luiz Eduardo Salles and associate Ingrid Santos
Counsel to OPP Films
Nasser Sociedade de Advogados
Partner Rabih Nasser and associate Nathalie Saito
Londres, 24 de agosto de 2016. News / Brazil, http://latinlawyer.com/news/article/50143/azevedo-sette-nasser-help-defeat-antidumping-allegations/