China to Levy Anti-Dumping Duty on U.S. Poultry, Ministry of Commerce Says
China Will Levy Anti-Dumping Duty on U.S. Poultry
Robert Caplin/Bloomberg
China will impose an anti-dumping duty as high as 105.4 percent on U.S. broiler chicken products.
China will impose an anti-dumping duty as high as 105.4 percent on U.S. broiler chicken products. Photographer: Robert Caplin/Bloomberg
China will impose an anti-dumping duty as high as 105.4 percent on U.S. broiler chicken products, effective tomorrow, the Ministry of Commerce said today.
China found that the U.S. industry dumped such products on the Chinese market, hurting domestic production, the ministry said. The tax rate will be 50.3 percent to 53.4 percent for those U.S. producers who cooperated with the investigation and 105.4 percent for those who didn’t, it said.
“The final ruling is that the there is a causal relationship between the U.S. dumping of broiler products and the losses suffered by the Chinese industry,” the ministry said in Beijing.
China said in April an initial investigation showed the U.S. provides subsidized soybeans and corn to its poultry industry, hurting Chinese producers. On Aug. 31, the government imposed five-year punitive anti-subsidy tariffs after upholding a finding that the U.S. broiler chicken products were subsidized.
Imports by Pilgrim’s Pride Corp. will incur a 53.4 percent anti-dumping duty and imports by Tyson Foods Inc. 50.3 percent, according to the ministry.
The anti-dumping investigation has been completed, the ministry said in its statement today.
Prices of broiler products in China were below cost of production for a long time, suppressing domestic producers’ profit margin, a direct result of large volume of cheap imports, it said.
China consumed almost 800,000 metric tons of U.S. chicken products in 2008, valued at $722 million, according to the USA Poultry & Egg Export Council.
China buys from the U.S. mainly chicken parts that are considered offal in western countries, a trade that creates additional value for U.S. producers, Li Qiang, managing director at Shanghai JC Intelligence Co. said on Aug. 31.
--Feiwen Rong. Editors: Paul Tighe, Jim McDonald
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at +86-10-6649-7563 or frong2@bloomberg.net
To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net
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