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USDA International Egg and Poultry


03 July 2012

USDA International Egg and Poultry: Brazil Files Dispute Against South Africa on Poultry MeatUSDA International Egg and Poultry: Brazil Files Dispute Against South Africa on Poultry Meat

On June 21, 2012, Brazil requested a consultation with South Africa under the WTO dispute settlement system concerning the latter’s anti-dumping measures on poultry meat from Brazil.
USDA International Egg and Poultry

The request formally initiates a dispute in the WTO and gives the parties an opportunity to discuss the matter and find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

South Africa’s International Trade Administration Commission (ITAC) initiated the investigation in June, 2011. In January, 2012 ITAC released a preliminary determination that dumping of Brazilian whole birds and boneless cuts was taking place and requested the Commissioner for South African Revenue Service (SARS) to impose provisional payments. SARS imposed anti-dumping tariffs on Brazilian whole broilers (0207.12.90) of 62.93%; the dumping margin on boneless cuts (0207.14.10) was found to be 6.26% for Coperativa Central Oeste Catarinense-Aurora Alimentos and 46.59% for all Brazilian boneless cuts. The anti-dumping duty is imposed up to and including August 10, 2012.

An anti-dumping duty against the US for poultry products in tariff number 0207.14.90 (bone-in cuts, include the chicken egg quarters) was instituted in 2000 for 5 years. US poultry exporters applied to have the anti-dumping ruling duty reviewed in 2005, but the South African Poultry Industry opposed the application and the anti-dumping duty was extended to November, 2011. A Sunset Review has been initiated and the protections will continue until such time as the Sunset Review is complete.

Source: WTO 2012 News Items; South Africa Government Gazette No. 35030 No. R. 105; USDA/FAS GAIN Report 9/22/2011; http://www.itac.org.za/documents/report%20no.%20389.pdf

US WTO Dispute with India

On March 6, 2012, the United States requested consultations with India under the dispute settlement provisions of the World Trade Organization concerning India’s prohibition on certain agricultural exports, including poultry meat and chicken eggs. Colombia requested to join the consultation on March 15, 2012.

As stated in a USTR Press Release: “Since at least February of 2007, India has formally banned imports of various agricultural products from the United States, supposedly to prevent outbreaks of avian influenza in India. India instituted this ban even though the United States has not had an outbreak of High Pathogenic Avian Influenza (“HPAI”) since 2004. In addition, international standards for avian-influenza control do not support the imposition of import bans due to detections of low pathogenic avian influenza (LPAI), the only kind of AI found in the United States since 2004.”

On May 11, 2012, the U.S. requested the establishment of a panel. At its meeting on May 24, 2012, the Dispute Settlement Board (DSB) deferred the establishment of a panel. A second request made on June 25, 2012 was automatically accepted.

Source: Bridges Weekly Trade News Digest, Vol. 15 No. 25 27th June 2012; http://www.ustr.gov/about-us/press-office/press-releases/2012/march/us-trade-representative-kirk-enforces-rights-us-farm;
http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds430_e.htm

Permanent Normal Trade Relations with Russia

With Russia set to join the World Trade Organization (WTO) this August, Ambassador Ron Kirk testified before Congress this week to advocate for passage of legislation terminating application of the Jackson-Vanik Amendment and authorizing the President to extend permanent normal trade relations (PNTR) to Russia.

On Wednesday, June 20, 2012, Ambassador Kirk testified before the House Ways and Means Committee to affirm the economic benefits of establishing PNTR with Russia for American workers, businesses, farmers, and ranchers.

In his remarks, the Ambassador urged Congress to terminate application of the Jackson-Vanik Amendment, which would otherwise prevent the United States from taking full advantage of Russia’s imminent accession to the WTO. The Jackson-Vanik Amendment is a 1970s-era provision that conditions US trade relations with specific countries on meeting certain requirements, including allowing free emigration. The conditions in the Jackson-Vanik Amendment would prevent the US from extending unconditional permanent normal trade relations to Russia as required by the WTO Agreement.

If Jackson-Vanik remains in place, the WTO agreement will not apply between the US and Russia. In that unfortunate event, American businesses and exporters would be at a competitive disadvantage in Russia compared to their foreign competitors. On the other hand, the Ambassador noted that with PNTR, US businesses will be in a better position to increase their exports to Russia, in support of additional American jobs.

Ambassador Kirk also highlighted how establishing PNTR with Russia will give the US the tools to enforce Russia’s WTO commitments. Ambassador Kirk highlighted how US negotiators successfully secured additional commitments from Russia in areas such as intellectual property, market access, and transparency. The Ambassador stressed that in contrast to previous accession agreements, these Russian commitments have already been fulfilled and will be in effect on day one of Russia’s WTO membership.

To read the entire press release go to: http://www.ustr.gov/about-us/press-office/blog/2012/june/ambassador-kirk-testifies-pntr-russia

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