July 18, 2011
Mexico investigates possible dumping of US poultry
The Mexican Ministry of Economy (or SecretarÃa de Economia, SE) is launching an investigation on whether the US is selling its poultry products below market price.
Jorge Arenas Cervantes, the president of the National Chamber of Commerce (Canaco) of Mexicali, Baja California, said that the SE is studying this possibility, which will ultimately affect consumers, restaurants, and other related industries in Mexicali.
"The World Trade Organisation agreement makes reference to a practice, known as anti-dumping... this is when a foreign company sells a product below market price," he said.
Cervantes said that if the investigations show that poultry products are entering Mexico below market price, they will get a tariff high enough to be equal with industry prices.
Alberto Sánchez Quiroz, co-delegate from Mexicali, confirmed that the SE will impose a tariff of 35% if findings confirm that US poultry is being sold below market prices.
Once the first deadline is met, the SE will have 180 additional days to complete its investigations, according to Cervantes. Its representatives will be in the US during this time to identify any illegal practices.
