China’s Ministry of Commerce announced on August 21 that it will extend countervailing duties on imports of U.S. chicken products for another five years.  The order, which goes into effect on August 30, renews duties that were first imposed in September 2010, claiming that chicken was subsidized in the United States and then dumped on the Chinese market at below market prices.  China will levy between 4 percent and 4.2 percent on U.S. poultry companies shipping into China.

In response to the announcement, NCC and USAPEEC said they were disappointed, “especially in light of the fact that the WTO has consistently and comprehensively found that China’s countervailing and anti-dumping duties violated its WTO obligations. Despite those decisions, China has still refused to remove these duties. The U.S. government has reasonably tried to work with China since then to resolve this matter consistent with the WTO dispute settlement panel’s decision, but China’s continued failure to abide by the ruling and to meet its obligations is unacceptable.”

In May 2016, U.S. Trade Representative Michael Froman mounted a challenge to China at the World Trade Organization (WTO) because of the Chinese Government’s failure to bring its antidumping and countervailing duties against imports of U.S. chicken broiler products into compliance with WTO rules.

“These unfair and unjustified taxes are in direct violation of China’s international commitment and tilt the playing field further against America’s poultry farmers.  American farmers deserve a fair shot to compete and win in the global economy and this administration will continue to hold China responsible when they attempt to disadvantage our farmers, businesses and workers,” Froman said at the time.

In 2013, a WTO dispute settlement panel comprehensively found that China’s anti-dumping and countervailing duties violated its WTO obligations. Despite that decision, China continues to refuse to remove these duties.

The Chinese Ministry of Commerce continues to claim that U.S. chicken is being dumped on the Chinese market, while at the same time, China also supports it poultry producers at both the national government and local level.

Chicken is the fastest-growing protein in overall consumption terms in China and accounts for nearly a fifth of total meat consumption.  China’s chicken consumption will largely stay flat in 2016, according to projections from the U.S. Department of Agriculture, which also forecasts that chicken imports are down 7 percent year-over-year.