Chinese antidumping duties on US chicken adjusted

The Chinese Ministry of Commerce (MOFCOM) will retain restrictive antidumping and countervailing duties on imports of U.S. chicken. The agency announced July 8 that it would reduce the duties on some U.S. poultry companies, while raising them on others.
The move from the Chinese ministry follows the World Trade Organization’s (WTO) ruling made in September 2014 that followed a longtime dispute between the two countries. China in 2010 had accused the U.S. of dumping and imposed tariffs on imports of U.S. chicken products, but the WTO ruled in favor of the U.S. chicken industry.
Antidumping and countervailing duties adjusted, but not lifted
After the WTO made its ruling, China had agreed not to appeal. The U.S. poultry industry had hoped the duties would be lifted, but MOFCOM’s recent actions concerning the duties showed otherwise.
According to the USA Poultry & Egg Export Council (USAPEEC), MOFCOM lowered the anti-dumping duty slightly on two of the three companies named in its initial anti-dumping and countervailing duty investigation, initiated in 2009, while raising the duty on the third company, along with those companies that cooperated in the investigation. According to USAPEEC, the Chinese agency lowered the duty rate on companies that did not cooperate. The countervailing duty rates follow a similar pattern.
USAPEEC, National Chicken Council seeks resolution on duties
USAPEEC and the National Chicken Council have both stated China’s decision to adjust the duties lack clarity, and are working with government officials in hopes of resolving the matter.
“We are disappointed to say the least,” said USAPEEC President Jim Sumner, whose organization has been fighting China’s allegation, along with many of the private companies involved. “We are consulting with the Office of the U.S. Trade Representative on the matter to determine our industry’s options, and to ensure that China complies with the WTO’s original ruling, which this clearly does not.”
“The World Trade Organization ruled on the facts and merits of this case and found that China’s actions were unjustified, and now continue to be unjustified, under international trade rules,” said NCC President Mike Brown. “We will begin working immediately with the U.S. government to seek a legal resolution to these actions by the Chinese.”

Relief from US-China poultry antidumping case may come in 2014

The World Trade Organization's ruling in favor of the U.S. in the Chinese antidumping case will be good for the U.S. poultry industry, but it could be a year or more before its benefits are seen, Tyson Foods CEO Donnie Smith said.
"It could take a year or so before we see any actual tariff reductions. If and when that happens, it would have a positive effect on our business, but that will likely be a 2014 event," Smith said on August 5 during a conference call to review Tyson Foods' 2013 third quarter financial results.
The World Trade Organization on August 2 ruled in favor of the U.S. in a dispute where China imposed antidumping tariffs that restricted U.S. chicken exports. The World Trade Organization determined that the antidumping tariffs imposed by China on U.S. chicken exports were inconsistent with international trade rules.
The Chinese antidumping case dates back to 2010, after China accused the U.S. of dumping and imposed tariffs on imports of chicken products. In the Chinese antidumping case, China alleged U.S. chicken producers benefited from subsidies and were exporting poultry at unfair prices. U.S. poultry interests quickly appealed to the World Trade Organization, who eventually sided with the U.S. 

US poultry producers look ahead to WTO decision on China antidumping case

U.S. Poultry & Egg Export Council President Jim Sumner addresses trade possibilities with China.

U.S. poultry exporters meeting in Williamsburg, Va., June 13 heard U.S. Poultry & Egg Export Council President Jim Sumner express optimism about the possibilities for new trade openings with China in 2013 as bilateral relations between the two countries have improved.
Sumner also told members that a decision is expected soon in the antidumping case involving China and the United States at the World Trade Organization.
After spending $1.9 million in a legal defense against the dumping charges, some USAPEEC members expressed optimism about the case now before the WTO. Some members said they expect that an announcement of the WTO decision might come as early as in the next 30 days.
Sumner said a ruling in favor of the U.S. would send a message to other countries around the world that might contemplate similar actions. He said the U.S. remains prepared to defend its trade interests in poultry and eggs.
Adding to a positive tone between the countries was the U.S. decision by Animal and Plant Health Inspection Service to share avian influenza virus samples from a past outbreak in Arkansas with Chinese authorities. The Chinese had sought the samples for a number of years. China recently reopened its borders to poultry produced in Arkansas.
Total value of U.S. poultry and egg exports in 2012 set a new record at $5.72 billion, up 12.2 percent from 2011, according to Sumner.
The percentage of U.S. broiler production exported in 2012 reached 21.4 percent. Meantime, the percentage of U.S. turkey production exported was 13.5 percent, and the percentage of U.S. egg production was 4.1 percent.

China drops antidumping investigation against US distillers grains

China has decided to drop its antidumping investigation against imports of U.S. distillers dried grains with solubles, DDGS, according to the Asian country's Ministry of Commerce. The investigation was launched in December 2010 at the request of domestic producers Cofco Biochemical (Anhui) Co., Jilin Fuel Alcohol Co., Meihekou Fukang Alcohol Co. and Jilin New Tianlong Wine Industry Co.
The same four companies requested that the ministry end the probe on May 10. Demand for U.S. DDGS is strong, as it is cheaper than feed grains. In 2011, China's DDGS imports totaled 1.69 million tons, down 47 percent from 2010 numbers, as buyers worried Beijing might impose duties on imports.

China extends anti-dumping probe on US distillers' grains imports

China's Commerce Ministry has said that it will extend an anti-dumping probe on imports of U.S. distillers' dried grains until June 28, 2012, before making a final ruling, according to reports. The extension is due to the case being "special and complicated," said the Ministry. The anti-dumping investigation was launched in December 2010, causing DDG imports in the first 11 months of 2011 to fall by 48% to 1.5 million metric tons. 2010 imports from the U.S. had previously grown 385% to 3.16 million metric tons, worth more than $753 million.

National Chicken Council comments on China duties

China’s Ministry of Commerce announced it would confirm the so-called anti-dumping duties on U.S. chicken originally imposed on a temporary basis in February. These are in addition to countervailing duties, confirmed earlier in September, to offset what China sees as subsidies to the industry.
Both sets of duties have effectively been in place since February. According to the National Chicken Council, "the U.S. poultry industry does not engage in dumping and does not receive subsidies. China’s actions followed the tariffs imposed by the U.S. on automotive tires made in China and U.S. Congressional action against the proposed export to the U.S. of cooked poultry products of Chinese origin."
From January to July 2010, the poultry trade with China was running at about 13% of its volume for the same period in 2009.
The National Chicken Council represents integrated chicken producer-processors, the companies that produce and process chickens. Member companies account for more than 95% of the chicken sold in the U.S.

China could impose anti-dumping duty on US poultry

China plans to impose anti-dumping duties on American chicken – a move that could lead to a 55% drop in the country’s imports of U.S. poultry, reported BusinessWeek.
The Chinese government accused U.S. processors of selling chicken meat at below-market prices in the country.
The United States has been the leading source of China’s chicken imports, accounting for 335,000 of 401,000 tons of imported chicken in 2009. That made China the third biggest export market for American poultry.

China may impose anti-dumping duties on US poultry

China may assess preliminary anti-dumping duties on poultry from the United States in an effort to check what it says are below-market prices on chicken feet and wings, RTTNews.com reported.
The Chinese Ministry of Commerce posted a notice on its Web site of the change, but indicated no date when enforcement would begin. The Chinese Poultry Association has accused American poultry producers of dumping feet and wings on the Chinese market.
The National Chicken Council said it “is very disappointed” with the decision. “We disagree that any chicken products have been sold below the cost of production or comparable price in the United States,” said a press release from the council.
According to the council, U.S. companies sold mainland China 693,830 metric tons of poultry products worth $620M from January through November of 2009. The USA Poultry & Egg Export Council reports that U.S. chicken accounted for 72.7%of China’s total broiler meat imports in 2008.
According to Jim Sumner, USAPEEC president, the Ministry of Commerce disregarded information from 36 U.S. companies that showed U.S. chicken is not being dumped on the Chinese market. “We’re hopeful that if Chinese officials study our submissions in greater detail, they will conclude that U.S. chicken products were, in fact, not dumped,” he said.
USAPEEC said that more than half of all U.S. poultry exports to China during the period under investigation were chicken feet, since Chinese farmers do not produce enough to meet demand. U.S. producers get a better price for feet on the Chinese market—$0.60 to $0.80 per pound—than the pennies per pound they can charge at home. “When a product is sold at export for prices that are many times higher than the price for the like good in the home market, that is not dumping. In fact, it is the very opposite of dumping,” the statement said.
Sumner added that he believes the anti-dumping move is a reaction to unrelated U.S.-China trade disputes, including those arising from U.S. safeguard duties on Chinese tires.

USAPEEC protests China’s anti-dumping action against US poultry

The U.S. Poultry & Egg Export Council has condemned China's move to file an anti-dumping case against U.S. poultry. The move, according to USAPEEC, is in response to the Obama administration's decision to impose tariffs on import of tires made in China.
The council has denied the dumping allegations. As per international trade rules, dumping arises only when a product is sold in a foreign market at a price lower than the domestic price. In this case, U.S. poultry exports to China consisting mainly of chicken feet and paws — commodities highly valued in the Chinese market — are sold at prices ranging from US 60-80 cents per pound. This is much higher than the price prevailing in the U.S. markets where these products are sold for rendering at pennies per pound.
USAPEEC also denied the charge that the U.S. government subsidizes its poultry industry.
The council argued that it has always opposed the anti-China provision included in the recent Omnibus Appropriation Bill and the House version of the 2010 Agriculture Appropriations Bill. The provision prevents USDA from promulgating a proposed rule to allow exports of cooked Chinese chicken to the U.S.
It has further urged the administration not to impose increased tariffs on Chinese tires.
The U.S. exported 451,000 metric tons of poultry — worth $393 million — to China in the last seven months. China has become the top market for U.S. poultry.

China launches anti-dumping probe into US chicken

China is launching anti-dumping and anti-subsidies investigations into American exports of automotive products and chicken meat, China's Ministry of Commerce announced on September 13.
The Chinese government said the above investigations are being held to answer early complaints from domestic poultry producers.