US mounts challenge to China’s high tariffs on chicken imports

The United States is launching a challenge to China’s continued high tariffs on U.S. chicken imports.

U.S. Trade Representative Michael Froman said Tuesday that the United States is making its case at the World Trade Organization (WTO) because Beijing has failed to bring its anti-dumping and countervailing duties on imports of U.S. chicken broiler products into compliance with global trade rules.

{mosads}“These unfair and unjustified taxes are in direct violation of China’s international commitments and tilt the playing field further against America’s poultry farmers,” Froman said.

“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.”

China has maintained high duties on American poultry exports despite a WTO report nearly three years ago finding that the tariffs breached WTO rules.

In July 2014, China responded by issuing a redetermination that provided additional reasons justifying the duties on U.S. chicken while making changes to tariff levels that Beijing said complied with WTO rules.

But the United States says China is still violating global trade rules.

“The food and agricultural products raised by America’s farmers and ranchers are among the most competitive in the world, and this administration has proven that we will not stand for trade barriers that put them at an unfair disadvantage in the global marketplace,” said Agriculture Secretary Tom Vilsack.

In the past seven years, U.S. agricultural goods, including chicken, have experienced the strongest period for American agricultural exports in history.

“China’s hefty tax on American poultry imports is unfair and, while I’m still hopeful that China will right this wrong on its own, we must be prudent and pursue action by the World Trade Organization,” said Sen. Tom Carper (D-Del.).

This trade enforcement action marks the 12th complaint brought by the Obama administration against China at the WTO.

Sen. Johnny Isakson (R-Ga.), a member of the Senate Finance Committee and co-chairman of the Senate Chicken Caucus, said the United States has been the only country willing to challenge China’s compliance at the WTO.

“Trade works when the rules are followed, and it is imperative that China — the world’s second-largest economy — lives up to the rules it agreed to when it joined the WTO in 2001,” Isakson said.

The U.S. poultry industry is the world’s largest producer and its second-largest exporter of poultry meat, according to the United States Trade Representative.

Nearly 18 percent of U.S. poultry is exported. The industry employs 350,000 workers and comprises 50,000 family farms.

Sen. Chris Coons (D-Del.), co-chairman of the Senate Chicken Caucus, said the “economic health of America’s agricultural sector is directly tied to its access to foreign markets.”

“That’s why it is critical for the United States to fight unfair protectionist policies of some of the world’s biggest markets like China,” Coons said.

“Today’s announcement sends a clear message that the United States will continue to hold China’s feet to the fire until it plays by the rules and opens up its market to our poultry,” he said.

In Tuesday’s consultation request, the United States is making claims under numerous WTO provisions including China’s failure to properly calculate costs for a U.S. producer and a failure to conduct a transparent reinvestigation.

“This trade enforcement action is necessary to hold China accountable for unfair taxes imposed on U.S. chicken producers so that farmers in Arkansas and around the country have a level playing field,” said Sen. John Boozman (R-Ark.).

China first imposed the duties on U.S. chicken products in 2010.

Anti-dumping duties ranged from 50.3 percent to 53.4 percent for some U.S. producers, while others saw the rate soar to 105.4 percent.  

Some U.S. producers saw countervailing duties between 4 percent and 12.5 percent, while others were slapped with a rate of 30.3 percent.