WTO panel finds China’s higher duties on U.S. chicken imports violate trade obligations 

August 2: A dispute settlement panel of the World Trade Organization (WTO) today announced the issuance of a report in favor of U.S. chicken producers, in a matter concerning China’s imposition of higher duties on chicken “broiler products” as being unjustified under international trade rules.

The WTO dispute settlement panel’s report generally agrees with the allegations of the United States, and finds that China has violated numerous WTO obligations in conducting its investigations and imposing antidumping duties (AD) and countervailing duties (CVD) on chicken imports from the United States.


The United States may request adoption of the panel report by the WTO’s Dispute Settlement Body. Both parties have the right to appeal issues of law or legal interpretation in the panel report to the WTO Appellate Body.

Background

In 2010, China’s Ministry of Commerce imposed antidumping and countervailing investigations of imports of “broiler products” from the United States. The antidumping duties ranged from 50.3% to 53.4% for U.S. producers who responded to the investigation notice, and was set at an “all others” rate of 105.4%.


In 2011, the United States requested dispute settlement consultations with China concerning the antidumping and countervailing duty investigations. After consultations proved unsuccessful, the United States requested that the WTO establish a panel to hear U.S. claims that China violated numerous procedural and substantive obligations under the WTO’s Antidumping Agreement and Agreement on Subsidies and Countervailing Measures.



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