China lowers anti-dumping taxes on US poultry

China is to lower anti-dumping duties on US chicken products following last year’s ruling against Beijing by the World Trade Organization in a four-year-old dispute.

China will levy anti-dumping taxes ranging from 46.6% to 73.8% on imports from US suppliers, including from major suppliers Tyson Foods Inc and Pilgrim’s Pride, a report from the Commerce Ministry states.

It would also levy anti-subsidy taxes ranging from 4% to 4.2% on US chicken producers. The anti-dumping and anti-subsidy duties were previously set as high as 105.4% and 30.3%, respectively.

The ministry said a re-investigation found evidence that US chicken exporters dump products in the domestic market and cause substantial harm to local industry.

The decision was a result of a re-investigation launched last December in response to a World Trade Organization (WTO) report that claimed China had violated certain rules on the issue.

In September last year, the WTO Dispute Settlement Body adopted a panel report supporting China’s arguments regarding determination of domestic industry and tradelevel differences.

But it also upheld the US claims that China acted inconsistently with articles of the Anti-dumping Agreement in conducting the investigations as well as in the calculation of the anti-dumping and countervailing duties.

US exports of chicken to China have fallen 90% over the past four years, costing sellers an estimated $1 billion after the Asian nation imposed the high anti-dumping duties in 2010.