Sep 21, 2011

U.S. Requests WTO Consultation Against China's Duties on its Chicken Exports

Image: U.S. Trade Representative Ron Kirk
On September 20, 2011, United States Trade Representative Ron Kirk announced that the Obama Administration has taken the first step to formally challenge China's imposition of import duties on U.S. chicken broiler products before the WTO -- namely, submitting a consultation request letter.

On September 17, 2009, China's Ministry of Commerce (MOFCOM) began investigating imports of U.S. chicken broiler products. Based on MOFCOM's findings that the U.S. chicken broilers were being sold in China at less than fair market value, anti-dumping and countervailing duties measures were respectively imposed on September 26, 2010 and August 30, 2010.

“To be clear, the United States does not arbitrarily seek disagreements with China,” said Ambassador Kirk in a news conference on September 20, 2011. “However, we will not stand still if we believe that China has violated its commitments as a WTO member and is therefore threatening American jobs – in this case hundreds of thousands of American poultry industry jobs."

According to the USTR press release announcing the WTO consultation, China's imposition of duties did not comport with WTO rules and threatens the U.S. poultry processing industry, which directly employees 300,000 workers. Before the duties were imposed, the U.S. was China's largest supplier of chicken broiler products. In 2009, more than 600,000 metric tons of U.S. broiler products were exported to China. Since the duties, these exports numbers are down 90 percent, according to the release.

If the two parties do not resolve the matter within 60 days through the WTO consultation process, a dispute settlement panel may be requested.



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