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USDA International Egg and Poultry


07 August 2013

USDA International Egg and Poultry: ChinaUSDA International Egg and Poultry: China

On August 2, 2013 the United States Trade Representative (USTR), the United States (U.S.) Secretary of Commerce, and the US Secretary of Agriculture announced that a World Trade Organization (WTO) settlement panel had a agreed with the US.
USDA International Egg and Poultry

The panel found that China violated numerous WTO obligations in conducting its investigations and imposing anti-dumping (AD) duties and countervailing duties (CVD) on chicken imports from the US

The US may request adoption of the panel report by the WTO’s Dispute Settlement Body. Both parties have the right to appeal issues of law or legal interpretation in the report to the WTO Appellate Body. Each side has 60 days to appeal the decision.

The WTO Panel found that China breached its WTO obligations by:

  • Levying countervailing duties on US producers in excess of the subsidization;
  • Relying on flawed price comparisons for its determination that China’s domestic industry had suffered injury;
  • Unjustifiably declining to use the books and records of 2 major US producers in calculating their costs of production; failing to consider any of the alternative allocation methodologies presented by US producers and instead using a weight-based methodology resulting in high dumping margins; improperly allocating distinct processing costs to other products inflating dumping margins; and allocating one producer’s costs in producing non-exported products to exported products creating inflated dumping margin;
  • Improperly calculating “all others” dumping margin and subsidy rates.

With respect to procedural failings in the China’s Ministry of Commerce (MOFCOM) investigations, the WTO Dispute Panel found that China breached its WTO obligations by:

  • Denying a hearing request during the investigation;
  • Failing to require the Chinese to provide non-confidential summaries of information it provided to MOFCOM;
  • Failing to disclose essential facts to US companies including how their dumping margins were calculated.

On September 27, 2009 China initiated antidumping and countervailing investigations of broiler product imports from the US. Exempted were live chickens and cooked and canned chicken. China imposed antidumping duties on September 26, 2010.

The antidumping duties placed on chicken producers ranged from 50.3-53.4% for US producers who responded to China’s investigation notice to 105.4% on all other US producers. China initiated CVDs on August 30, 2010. CVDs ranged from 4.0-12.5% for participating US broiler producers and 30.3% for all other US broiler producers.

After China imposed the duties in 2009, exports of broiler products dropped at least 80% in 2010 to China. China went from the number 2 US broiler meat export destinations in 2008 to 16th in 2010 after the duties were imposed. In 2012 China had climbed to 8th in US broiler meat export destinations. US turkey meat exports to China were not affected by the duties and increased 55% from 2009 to 2012.

Sources: USDA News Release No. 0153.13; USTR; Department of Commerce, US Census Bureau, Foreign Trade Statistics/USDA, Foreign Agricultural Service; various news sources.

Source: FAOSTAT, FAO Statistics Division 2013, 03 August 2013


Source: Department of Commerce, US Census Bureau, Foreign Trade Statistics/USDA, Foreign Agricultural Service


Source: Department of Commerce, US Census Bureau, Foreign Trade Statistics/USDA, Foreign Agricultural Service

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