Mon,Aug 5,2013
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A recent ruling by the World Trade Organization (WTO) against China's imposition of duties on broiler chicken imports from the US will cause severe harm to China's poultry industry, poultry analysts said Sunday.
"China's poultry industry grew faster after China imposed duties on broiler chicken from the US, indicating that the dumping of the US chicken products had materially damaged China's poultry industry," Ma Chuang, secretary-general of the Chinese Association of Animal Science and Veterinary Medicine (CAAV), told the Global Times Sunday.
"But affected by the bird flu early this year, China's poultry industry has had a hard time recently and is now in a period of recovery. The removal of the tariffs on US chicken products means adding insult to injury for Chinese poultry farmers," said Ma.
The WTO ruled Friday that China had broken rules by imposing anti-dumping duties. China's Ministry of Commerce reacted late Friday by saying that China will evaluate the WTO panel report and carry out follow-up work according to the dispute settlement procedures. The country has 60 days to appeal.
"The US superficially uses market means to sell its chicken products in China but in fact it is manipulating China's chicken market to create an unfair competitive environment for the Chinese poultry farmers," Ma Wenfeng, an analyst with Beijing Orient Agribusiness Consultant Co, told the Global Times.
In September 2010, China imposed anti-dumping duties on broiler chicken, ranging from 50.3 percent and 105.4 percent for five years. The US filed a complaint with the WTO against China's duties in 2011.
The US has been the largest exporter of broiler products to China accounting for 90 percent of China chicken imports, according to industry analysts.
"Friday's ruling is no doubt a bad news for Chinese poultry farmers who are still struggling with impact from the bird flu," Guo Huiyong, a Beijing-based industry analyst, told the Global Times.
"But the US may not necessarily be the ultimate winner. China's chicken imports from countries such as Brazil and Argentina have greatly increased in the past few years," Guo said.
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