WASHINGTON? U.S. Trade Representative Michael Froman announced Tuesday that the United States is mounting a challenge to China at the WTO because of the Chinese Government?s failure to bring its anti-dumping and countervailing duties against imports of U.S. chicken broiler products into compliance with WTO rules. These duties, which act as high taxes on American poultry exports to China, have remained despite a WTO report that previously found China to be breaching its WTO obligations. Now, the United States is challenging these taxes on behalf of American poultry producers and the hundreds of thousands of people employed in the poultry industry.
This trade enforcement action marks the 12th complaint brought by the Obama Administration against China at the WTO, and the United States is firmly committed to ensuring that China lives up to its WTO obligations, and that American farmers and workers can compete and win on a level playing field in the global economy.
?Tuesday?s action holds China accountable for unfair taxes they are imposing on American exports of broiler chicken products,? said U.S. Trade Representative Michael Froman. ?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. 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. Today?s action is the 12th that this Administration has taken against China at the WTO ? and to date we have won every case that been decided.?
On September 25, 2013, the WTO adopted the panel report in the China ? Broiler Products dispute, which found in favor of the United States on over a dozen claims asserting that China?s duties breached WTO rules. China subsequently undertook a re-investigation and, in July 2014, issued a re-determination that purports additional rationales justify continuing its duties on U.S. broiler products. China has asserted that this re-determination has brought China into compliance with the findings in the WTO Panel Report. Since then, the United States has reviewed China?s re-determination and engaged closely with U.S. stakeholders on next steps. On the basis of this intensive review, the United States considers that the re-investigation process and the re-determination breach WTO rules and that accordingly, China has failed to bring its measures into compliance with WTO rules.
In Tuesday?s consultation request, the United States is making claims under numerous provisions of the WTO Anti-dumping Agreement and the WTO Subsidies and Countervailing Measures Agreement. Those claims include China?s failure to properly calculate costs of production for a U.S. producer, a failure to conduct a transparent reinvestigation, and various failures with respect to China?s finding that the Chinese industry has been injured on account of U.S. exports.
The United States is the only WTO Member to challenge a claim of compliance by China following WTO findings that China was breaching WTO rules. This is the second time that the United States has challenged China?s failure to comply in a WTO dispute. In the first instance, the United States prevailed in its claim that China?s continued imposition of extra duties on specialty steel products was inconsistent with WTO rules. Following that challenge, China terminated the extra duties.
