WTO takes up China-US dispute over poultry

 

The WTO's members automatically set up a panel to examine the complaint at a meeting of its Disputes Settlement Body here, a trade source said, 11 days after China first requested its global trade watchdog to intervene.

 

"The panel was established," the source said.

 

China says the US is breaching international trade rules through several measures including an appropriations bill which it says result in a complete ban on imports of Chinese poultry.

 

"These unilateral measures fundamentally violate relevant WTO rules, significantly impede the ordinary Sino-US trade in poultry products, and substantially impair the rights and benefits that Chinese enterprises deserve to enjoy," China said in a statement released by its mission to the WTO.

 

"These measures are naked discriminative protectionism measures, which are strongly opposed by the Chinese government and enterprises," it added.

 

China and the US halted imports of each other's poultry in 2004 over fears about the spread of bird flu.

 

Imports of some US poultry products to China have since been resumed but Chinese officials have complained that the US continues to hold up reciprocal imports of Chinese poultry.

 

The US argued that it had taken "an objective, science-based response" permitted under WTO rules while US authorities examine whether Chinas food safety system meets their level of health protection.

 

"We do not agree with Chinas assertions that the measure at issue amounts to a discriminatory or protectionist measure," the US said in a statement to the WTO meeting.

 

"Although we are disappointed that China has chosen to pursue a panel in this matter, we are confident that this dispute can be resolved through the WTO dispute settlement system."

 

"Therefore, we see no reason that this or any other dispute should have repercussions on any other trade matters between the United States and China," it added.

 

The decision by the WTO's member states came after both sides failed to resolve their dispute in talks.

 

A panel of experts is set up automatically on the plaintiff's second request, in this instance after the US vetoed China's first request for a WTO ruling on July 20.