Posts Tagged ‘US Chicken feet in China’

US Chicken Being Dumped, Says China

Wednesday, September 29th, 2010

By: Ainsley Brown

The seemingly endless trade rows between the United States and China continue unabated.

Dumped US Chicken causing materal injury, China.

What is it this time? Tires? Steel? Autos? Or maybe intellectual property protection? No, no, not this time,  this time it’s chicken – more specifically the importation of US chicken into the Chinese market.

This however is not a new skirmish but rather one that begun earlier this year when China imposed anti-dumping duties in February in the range of 43.1% and 105.4% on imported US chicken after a preliminary investigation showed dumping; see here. A few months later China then imposed countervailing duties, a first for China on an agricultural product, of up to 31.4% due to the subsidies US chicken producers receive (the complaint is largely about the state aid that goes to corn and soybean that make up chicken feed); see here.

It is important to note that the anti-dumping duties imposed in February were imposed pending furthering investigation. Well the investigation has been concluded and the results are in –Dumping. According to the Chinese imported US chicken is been sold at below market value and has caused material injury to their domestic producers. The new duties range from 50.3%- 105.4% and apply to whole chickens, chicken parts and chicken feet, however, they do not apply to cooked chicken products.

These tariffs will come as a huge blow to US producers, as the US had become the number one source of imported chicken in China. In fact, chicken is one of the only areas in which the US enjoys a trade surplus with China.

All must face the rain but some US exporters will fare better than others

If there is some positive news for US chicken producers in all of this is that not all of them will be affected in equally. For those that co-operated with the Chinese investigation, like Tyson Foods and Pilgrim’s Pride Corporation, will pay a lower duty (50.3%-53.4%) and fro those that did not, well a 105.4% duty greets them in Chinese ports.

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China To Impose More Tariffs On Imported US Chicken.

Monday, May 3rd, 2010

By: Ainsley Brown

It seems like there is more bad news for US exporters of Chicken to China – get ready for a whole new round of tariffs.

China has over the years become the largest export market for US chicken with sales of over US$722 million in 2008. The Chinese market for US exporters is a win/win; representing a dynamic market with tremendous growth potential, much of which consisting of chicken feet sales. The chicken feet market in the US is so small that chicken feet are often considered waste and therefore a cost; in China the reverse is true.

These new countervailing duties, of up to 31.4%, are on top of the anti-dumping duties China has already imposed earlier this year. The anti-dumping duties, as covered in a pervious post, range from 43.1% to 105.4% were imposed after a Chinese anti-dumping investigation  which found that the Chinese domestic market had suffered material injury from the cheaper US imports. Unlike anti-dumping duties, countervailing duties are not imposed because of dumping – selling goods cheaper than the cost of production – but because of unfair subsidization – state support. In this case the Chinese are complaining about the subsidies on corn and soybeans that go into making chicken feed.

These new tariffs represent a first for China; it has never before imposed countervailing duties on an agricultural import. The move by the Chinese Commerce Ministry comes as a bit of a surprised considering the recent warming of relations between the two nations.

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