U.S. Trade Representative Michael Froman, Secretary of Commerce Penny Pritzker, and Secretary of Agriculture Tom Vilsack announced today in a press release that the United States has won a major case at the World Trade Organization (WTO) on behalf of American chicken producers, proving that China’s imposition of higher duties on chicken “broiler products” is unjustified under international trade rules. Following China’s action, American exports of chicken products dropped by 80-percent.
A WTO dispute settlement panel agreed with the United States, finding that China violated numerous WTO obligations in conducting its investigations and imposing anti-dumping duties and countervailing duties on chicken imports from the United States.
“This decision sends a clear message that the Obama administration can fight and win for American farmers, businesses, and workers in the global trading system, ensuring that America gets the benefit of the rules and market access we have negotiated in our international trade agreements,” said Ambassador Froman. “WTO Members must use trade remedies strictly in accordance with their commitments, and we hope that this win will discourage further violations that hurt American exporters.”
“Agricultural exports continue to be a strong and growing component of U.S. exports. Farm exports in fiscal year 2012 reached $135.8 billion and supported 1 million jobs here at home. More than $23 billion worth of those agricultural products went to China alone. But China’s prohibitive duties on broiler products were followed by a steep decline in exports to China – and now we look forward to seeing China’s market for broiler products restored,” said Secretary Vilsack. “This is an important victory today for the U.S. poultry industry, and for American farmers and ranchers.”
“When U.S. producers or exporters face antidumping or countervailing duty investigations abroad, the Department of Commerce stands ready to help them understand their rights and secure a fair process,” said Secretary Pritzker. “In the U.S., we work hard to ensure that our investigations into unfair trade actions are transparent, procedurally fair to all parties, and consistent with our WTO obligations. We expect nothing less for the U.S. industry in foreign trade remedy investigations. We are committed to ensuring that other countries play by the rules and will continue to work with USTR to achieve that goal,” Secretary Pritzker said.
This is the second of three recent WTO disputes in which the United States has challenged important flaws in China’s administration of its anti-dumping and countervailing duty measures. The United States has prevailed in the first two disputes, on a specialty steel product and now on chicken broiler products, and is actively litigating a third regarding automobiles.
In September 2011, the United States requested that the WTO establish a panel to hear U.S. claims that China violated a number of procedural and substantive obligations under the WTO’s Anti-dumping Agreement and Agreement on Subsidies and Countervailing Measures. In its report, the WTO panel found in favor of the United States on nearly all U.S. claims. 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.
The joint press release, containing the background in the case and the findings of the WTO panel is available here. A copy of the panel’s report is available here.
