September 29, 2010

USAPEEC responds to China poultry tariffs

"We flatly reject MOFCOM's assertion that our industry dumped or sold subsidised US chicken on the Chinese market. US chicken products were sold in China at prevailing market prices. These products are in high demand in China," said USAPEEC president Jim Summer.

"We are especially disappointed that MOFCOM declined to accept a settlement of the case that would have been a win-win for both the US and Chinese industries," he said.

Summer also expressed the industry's appreciation for the US government's support in trying to resolve the issue. He said the industry is planning its next steps in appealing MOFCOM's unfair findings.

The Chinese Ministry of Commerce (MOFCOM) had announced a final determination of its anti-dumping investigation of imports of US chicken, and will impose punitive import duties on a range of US chicken parts.

The announcement, which MOFCOM made on Sunday (Sep 26), comes a year after the agency launched an anti-dumping investigation in response to a petition filed by the Chinese Animal Agriculture Association.

Sunday's announcement imposes specific rates of additional duties for three companies whose exports to China were reviewed during in the investigation: Pilgrim's Pride, 53.4%; Keystone Foods, 50.3%; and Tyson Foods, 50.3%. The final duty rate for the 32 other US export companies that registered in the investigation will be 51.8%; the rates for any exporter that did not register in the investigation will be 105.4%.

Last month, MOFCOM also issued a final determination in a countervailing duty investigation of US poultry imports, and has imposed additional countervailing duties on US poultry imports on the theory that US poultry industry benefits unfairly from US government subsidies to corn and soy producers.

China's decision to launch an antidumping case against US poultry came after the US imposed additional import duties on low-priced tires and other products from China.