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U.S. Again Challenging Chinese AD/CV Duties on Chicken Broiler Products

Wednesday, July 27, 2016
Sandler, Travis & Rosenberg Trade Report

The Office of the U.S. Trade Representative is accepting comments through Aug. 15 on the issues raised in a World Trade Organization case the U.S. has brought against China concerning its continued imposition of antidumping and countervailing duties on chicken broiler products from the U.S. Bilateral consultations held May 24 were unable to resolve the matter.

In 2010 China imposed AD duties of 50.3 percent to 105.4 percent and CV duties of 4 percent to 30.3 percent on imports of chicken broiler products from the U.S. The U.S. challenged those duties at the WTO, which found that China had breached several procedural and substantive obligations in conducting its AD and CV investigations and that there were numerous defects in China’s determination that imports from the U.S. caused adverse price effects in the Chinese market. China subsequently issued a redetermination advancing additional rationales for the duties, some of which were lowered and some of which were increased, and asserted that it had complied with the WTO’s findings.

After an intensive review USTR concluded otherwise and is therefore challenging China’s redetermination on various grounds. These include China’s failure to properly calculate costs of production for a U.S. producer, failure to conduct a transparent reinvestigation and various failures with respect to the finding that the Chinese industry has been injured on account of U.S. exports.

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