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China Will Not Appeal Chicken Trade Decision Against US

26 September 2013

US & CHINA - China’s decision not to appeal chicken case to the the World Trade Organization (WTO) is welcome news for US industry.

The announcement on 25 September by US Trade Representative Michael Froman that the WTO has formally adopted the recent dispute settlement panel’s report in China’s anti-dumping and countervailing duty cases against imports of US chicken products is welcome news for the US poultry industry, according to the USA Poultry & Egg Export Council (USAPEEC) .

"The most important thing for both sides is to put this unfortunate situation behind us as quickly as possible,” said Jim Sumner, president of USAPEEC. "We’re also hopeful that China will remove anti-dumping duties on US chicken imports quickly.”

Over the last year, Mr Sumner made several trips to China for discussions with the Chinese poultry industry and with government officials, including a meeting last November with the deputy director of the Chinese Ministry of Commerce.

"We basically both agreed in principle at that time to accept the WTO panel’s ruling and to move forward,” he said. "It has not been in either of our best interests.”

Mr Sumner said that he met with Chinese poultry industry organisations several times to emphasize the positive relationship that the US and Chinese industries have developed over the years, and to solicit support for continued joint industry-to-industry activities, such as an international poultry symposium scheduled for November in China.

"We realise that the Chinese industry is going through some difficult times but USAPEEC has pledged to work with Chinese producers to expand poultry consumption in China,” he said. "We’re thankful that they recognise the benefit of working together for the benefit of both industries.”

Mr Sumner also praised former USTR, Ron Kirk, and Chief US Agricultural Negotiator, Dr Islam Siddiqui, for pursuing the case through the WTO process.

WTO Adopts Report Ruling in Favour of US in Chicken Products Trade Dispute with China

United States Trade Representative (USTR) Michael Froman announced that the World Trade Organization (WTO) adopted a 2 August 2013 dispute settlement panel report in favor of the United States in a major trade dispute with China, proving that China’s imposition of duties on US chicken "broiler” products violates international trade rules.

With the report now formally adopted by the WTO Dispute Settlement Body, China must bring itself into compliance with its WTO obligations. In 2009 – the year before China imposed the duties – the United States exported over 613,000 metric tons of broiler meat to China. Exports fell almost 90 per cent after the imposition of the duties, according to a USTR press release.

National Chicken Council President Mike Brown said: "Today’s announcement is welcome news to US chicken producers, who look forward to once again competing in this viable export market without unjustified trade restrictions.

"We’re hopeful that mutually beneficial trade in poultry products between China and the United States can now be restored as soon as possible. Today’s news sends a clear message to other countries that have similarly brought unjustified antidumping duties on US chicken products.”

Ambassador Froman noted, "This decision represents a significant victory for American farmers and chicken producers and proves that the United States will not stand by while our trade partners unfairly hurt US exports and US jobs. Given the wide-ranging violations found by the WTO, I hope that China’s acceptance of the WTO’s decision without appeal signals a recognition by China that it needs to take a serious look at its trade remedies regime and bring its rules, procedures and practices into line with its WTO obligations.”

TheMeatSite News Desk

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