The Brazilian Ministry of Development, Industry, Commerce and Services' Secretariat of Foreign Trade (Secex) is investigating claims of dumping in the exports of powdered milk from Argentina and Uruguay to Brazil. The investigation follows Secex finding that these exports are damaging the domestic industry. The investigation will focus on whole and skimmed milk powder, looking for evidence of unfair competition, especially in bulk purchases that are fractionated in neighboring countries. Both Argentina and Uruguay have responded to the claims, arguing differences in product characteristics and distribution channels. This investigation comes as Brazil seeks to meet high demand for dairy products through imports.