US initiates dispute against China

On 20 September 2011, the United States requested WTO consultations with China to challenge China's measures imposing anti-dumping and countervailing duties on broiler products from the US. The request formally initiates a dispute; if consultations fail to resolve the dispute after 60 days the US may request adjudication by a panel.

The US is challenging China's duties as inconsistent with several provisions of the GATT 1944, the AD Agreement and the SCM Agreement. In a press release, the US Trade Representative (USTR) stated the US was concerned that "China seems to have failed to observe numerous transparency and due process requirements, failed to properly explain the basis for its findings and conclusions, incorrectly calculated dumping margins, incorrectly calculated subsidy rates and made unsupported finds of injury to China's domestic industry".

After China imposed the duties, total US broiler meat exports to China fell 86 per cent, from 613,682 metric tons (MT) in 2009 to 85,285MT in 2010. Exports of chicken paws/chicken feet fell from 377,805MT to 48,219MT, a decrease of 87 per cent.

Other countries were only able to replace a portion of the lost volume of broiler meat imported by China. Brazil's exports to China increased by 1,028 per cent and Argentina broiler meat exports rose by 190 per cent. Even with increased imports from other countries, total broiler meat imports in 2010 were 28 per cent lower compared to 2009.

History
China's Ministry of Commerce (MOFCOM) initiated anti-dumping and countervailing investigations on US broiler products on 23 September 2009 and anti-subsidy investigations on 27 September 2009. China began collecting deposits on anti-subsidy/countervailing duties on 13 February 2010 and anti-dumping duties on 30 April 2010. The final anti-dumping duties were set at 50.3 per cent to 53.4 per cent for US producers and exporters who participated in the investigation and 105.4 per cent for all others. The final countervailing duties vary from 4.0 per cent to 12.5 per cent for participating US producers and exporters and 30.3 per cent on all others.
Source: United States Trade Representative press release; USDA/AMS PMNA; USDA/FAS GAIN Report; news wires

US trade mission to Viet Nam

Acting Under Secretary for Farm and Foreign Agricultural Services, Michael Scuse, led USDA's first-ever agricultural trade Mission to Viet Nam in the cities of Hanoi and Ho Chi Minh City from 24 to 29 September. Viet Nam is one of the world's fastest-growing economies and an important market for US agricultural products. Two-way agricultural, fish and forestry trade with Viet Nam reached nearly $3.4 billion in 2010.

Viet Nam's poultry meat imports experienced spectacular growth in 2010. Viet Nam favours dark-meat chicken (leg quarters, drumsticks and wings) and also provides a market for spent hens. The current domestic avian influenza situation, combined with strong growth in domestic demand, high inflation and high feed costs, have led to high prices for domestic chicken meat. These high prices have led to even more opportunity for US broiler meat exports to Viet Nam and helped provide a thriving market for US chicken dark meat.

Due to the sluggish economy in 2009, US poultry meat exports to Viet Nam in 2009 were only $48 million, a year-on-year decrease of 33.4 per cent from 2008. However, these exports in 2010 reached a new record of $75 million, an increase of 65 per cent over 2009.
Source: Department of Commerce, US Census Bureau, Foreign Trade Statistics

Further Reading

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