Brazil locks in antidumping duties on US, Canada polyethylene

Brazil has approved five-year antidumping duties on polyethylene (PE) imports from the United States and Canada, maintaining them at the levels initially introduced on a provisional basis in August 2025. Although the technical findings following the investigation pointed to higher dumping margins—especially for US shipments—the Government Chamber (Camex) elected not to increase the duties. Officials explained that maintaining the lower rates was a deliberate decision to avoid placing excessive financial pressure on downstream industries that rely on plastic resins.

The confirmed duties are set at $199.04 per tonne for US imports and $238.49 per tonne for Canadian material, even though calculated dumping margins—particularly for US products—were significantly higher, exceeding $700 per tonne. Authorities prioritized broader economic considerations over the strict enforcement of the calculated margins after multiple trade associations expressed concerns regarding price pressure.

These measures have already had a noticeable impact on Brazil’s import patterns. The United States, once the dominant supplier of polyethylene to Brazil, has seen its share of imports drop sharply—from around 70% to roughly 37%. Buyers have become more cautious, with some delaying or scaling back purchases due to uncertainty around duties and the risk of retroactive charges. Meanwhile, suppliers from other regions, including the Middle East and neighboring South American countries, have increased their presence, stepping in to fill the gap left by declining US competitiveness.

The decision has not been universally welcomed. Braskem, the domestic producer that initiated the complaint, has expressed dissatisfaction, arguing that the final duties are too low relative to the investigation's findings. The company is reportedly considering an appeal. While the lower tariffs may help mitigate costs for plastic processors and other downstream users, they could also leave local producers facing continued pressure from imported material.

Overall, the move highlights Brazil’s effort to strike a balance in its trade policy—supporting domestic industry while trying to limit cost increases for businesses that depend on imported raw materials. Excessive pressure on resin prices could create more favorable conditions for the import of manufactured products, or even lead companies to relocate to neighboring countries with more competitive production conditions.

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