January 20, 2012

Pending further investigation into disputed trade practices, Mexico would hold off imposing anti-dumping tariffs on chicken imports from the US, it said Thursday (Jan 19).

In late January last year, Mexico announced the investigation into chicken leg and thigh imports from the US, Mexico's top trading partner, following allegations of price gouging by domestic chicken processors.

But the 99-page statement published in the government's official gazette said the investigation was still underway and placed a 30-day deadline for all interested parties in the dispute to present additional arguments to the economy ministry.

"The investigation into unfair trade practices in the form of price discrimination will continue without imposing provisional countervailing duties on imports of chicken leg quarters from the US," the government said.

Mexican producers have argued since 2007 that below-cost chicken leg and thigh imports from the US have increased substantially, eating up a larger share of the local market. US consumers prefer chicken breasts and can send the other parts south at a lower cost, the Mexican companies argue.

Mexican imports of US chicken surged nearly 18% in 2010 to 980 million pounds (445 million kilogrammes), according to the USDA, and totalled 855 million pounds (388 million kilogrammes) in the first 10 months of 2011.

According to the Mexican government, the amount of chicken leg and thigh imports from the US in dispute is 570 million pounds (260 million kilogrammes).