China-U.S. Trade War in WTO Now Includes Chicken Feet
The U.S. has asked the World Trade Organization (WTO) to settle its dispute with China over duties imposed by Beijing on chicken feet imports from the U.S. that is adversely affecting American chicken producers.
U.S. Representative to WTO Ron Kirk made the request on Dec. 8 arguing that the 50 to 53 percent anti-dumping duties and 4 to 30 percent countervailing duties on U.S. chicken feet imposed in September and August 2010, respectively, is threatening American jobs. Kirk said chicken feet exports to China have falled 90 percent since China's Ministry of Commerce (MOFCOM) imposed the tariffs.
"The United States will not stand idly by while China appears to have misused its trade remedy laws and put American jobs at risk," said Ambassador Kirk. "We are serious about holding China accountable to its WTO commitments and ensuring that there is a level playing field for American businesses - including our farmers."
The MOFCOM imposed the duties on grounds that U.S. broiler products were subsidized and sold at less than fair value (i.e., "dumped") into the Chinese market.
However, Kirk said China failed to follow strict procedures in imposing duties on imports of merchandise that are subsidized or dumped, including proving those imports cause injury to the domestic industry and applying defined legal standards when conducting the investigations that determine whether duties are warranted.
"The U.S. panel request alleges that Chinese authorities failed to abide by applicable procedures and legal standards, including by finding injury to China's domestic industry without objectively examining the evidence, by improperly calculating dumping margins and subsidization rates, and by failing to adhere to various transparency and due process requirements," said Kirk.
Prior to the imposition of these duties, the United States was the largest exporter of broiler products to China, said Kirk. Exports amounted to $278 million in 2009, according to the USA Poultry and Egg Export Council, a trade group.
American poultry farmers previously discard chicken feet, which were grounded and turned into pet food. But China started importing these because it is a popular snack among Chinese, who prefer the American chicken feet because of their plumpness.