Posted August 13, 2013

On Aug. 2, the World Trade Organization (WTO) issued a panel report in favor of the United States in a trade dispute after China imposed anti-dumping and countervailing duty measures that restricted poultry exports from the U.S.  The WTO panel report is available, here.  According to the report, the United States challenged the “substantive analysis of China’s Ministry of Commerce (MOFCOM) under several provisions of the Anti-Dumping and SCM Agreements and the GATT 1994, as well as the manner in which MOFCOM conducted its investigations.”

According to the Washington Post, China imposed tariffs on U.S. imports of “broiler products” in September of 2010, claiming that U.S. chicken producers benefitted from subsidies and “were exporting their goods at unfairly low prices.”  While countries “are allowed to impose punitive tariffs to offset both practices,” U.S. officials “claimed China did not follow proper procedures when it imposed the tariffs.”  In 2011, the U.S. appealed to the WTO.  The Washington Post article is available here. 

According to Reuters, an “official with the U.S. Trade Representative’s office estimated that the United States has lost about $1 billion in broiler product sales since the duties were imposed” in 2010.  U.S. Secretary of Agriculture, Tom Vilsack, stated that “China’s prohibitive duties on broiler products were followed by a steep decline in exports to China – and now we look forward to seeing China’s market for broiler products restored.”  The Reuters article is available here.

The Poultry Site reports that China’s Ministry of Commerce (MOFCOM) stated that China will evaluate the panel’s report, and “will handle the follow-up work in line with dispute settlement procedures.”  China has 60 days to appeal the ruling.