The World Trade Organization on Friday ruled in favor of the United States in a dispute with China over its imposition of higher duties on chicken imports, which caused an 80 percent drop in the export of this commodity to the Asian country.
A WTO dispute settlement panel agreed with the United States, finding that China violated numerous WTO obligations in conducting its investigations and imposing antidumping duties and countervailing duties on chicken imports from the United States.
"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,” said U.S. Trade Representative Michael Froman in a statement.
The Monitoring and Enforcement unit of the Office of the U.S. Trade Representative and other USTR staff worked closely with the Commerce and Agriculture departments in preparing and litigating this case. Personnel from the Interagency Trade Enforcement Center (ITEC), created by President Obama to enhance U.S. trade enforcement capabilities, also provided support for the dispute.
"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 Agriculture Secretary Tom Vilsack. "This is an important victory today for the U.S. poultry industry, and for American farmers and ranchers."
This is the second of three recent WTO disputes in which the United States has challenged “flaws” in China's administration of its antidumping 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.