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U.S. Advances WTO Dispute on Chinese AD/CV Duties on Poultry Imports

Monday, December 12, 2011
Sandler, Travis & Rosenberg Trade Report

The U.S. advanced its World Trade Organization complaint against China’s antidumping and countervailing duties on chicken broiler products Dec. 8 by requesting the establishment of a WTO dispute settlement panel. The U.S. launched this case in September by requesting consultations with China, which were held Oct. 28 but were unsuccessful in resolving the dispute.

According to a press release from the Office of the U.S. Trade Representative, in 2010 China levied AD duties ranging from 50.3% to 105.4% and CV duties of between 4.0% and 30.3% on imports of U.S. broiler products. In its WTO case the U.S. is alleging that Chinese authorities failed to abide by applicable procedures and legal standards for imposing these duties, including by finding injury to China’s domestic industry without objectively examining the evidence, improperly calculating dumping margins and subsidization rates and failing to adhere to various transparency and due process requirements. The U.S. had been the largest exporter of broiler products to China, USTR notes, but since the imposition of the AD/CV duties U.S. exports have fallen by nearly 90%.

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