US launches WTO assault on Chinese chicken duties

The United States is mounting a challenge to China at the WTO because of the Chinese Government’s failure to bring its antidumping and countervailing duties against imports of US chicken broiler products into compliance with WTO rules.

These duties, which act as high taxes on American poultry exports to China, have remained despite a WTO report that previously found China to be breaching its WTO obligations. Now, the United States is challenging these taxes on behalf of American poultry producers and the hundreds of thousands of people employed in the poultry industry.

Not living up to WTO obligations

This trade enforcement action marks the 12th complaint brought by the Obama Administration against China at the WTO, and the United States is firmly committed to ensuring that China lives up to its WTO obligations, and that American farmers and workers can compete and win on a level playing field in the global economy.

“Today’s action holds China accountable for unfair taxes they are imposing on American exports of broiler chicken products,” said US Trade Representative Michael Froman. “These unfair and unjustified taxes are in direct violation of China’ s international commitments and tilt the playing field further against America’s poultry farmers. American farmers deserve a fair shot to compete and win in the global economy and this Administration will continue to hold China responsible when they attempt to disadvantage our farmers, businesses and workers.”

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China is the world’s 2nd largest poultry market but it’s strict policy on avian influenza has made trade particularly difficult in recent years meaning that consumer demands are not being met.

US poultry organisations applaud the move

“The US chicken industry applauds the announcement by US Trade Representative Michael Froman that USTR will request that the World Trade Organization take action against China for its failure to eliminate its anti-dumping and countervailing duties on US chicken exports,” US poultry organisations the USAPEEC and NCC said in a shared statement.

“As one of the main export destinations for products like chicken paws and wingtips, China is an important market to the United States. The sale of these products added considerable value to the US broiler industry, and the duties imposed by China have unfairly hindered access to this important market.

“In 2013, a WTO dispute settlement panel comprehensively found that China’s anti-dumping and countervailing duties violated its WTO obligations. Despite that decision, China has still refused to remove these duties. The US government has reasonably tried to work with China since then to resolve this matter consistent with the panel’s decision, but China’s continued failure to abide by the ruling and to meet its obligations is unacceptable.”