Poultry industry supports 13,000 Delaware jobs
WASHINGTON – Today, U.S. Senators Tom Carper and Chris Coons (both D-Del.) and U.S. Representative John Carney (D-Del.) applauded an announcement from U.S. Trade Representative Michael Froman that the United States is mounting a challenge to China at the World Trade Organization (WTO) because of the Chinese Government’s extremely high tariffs on American poultry products, which act as significant barriers to American poultry exports to China. The WTO has already stated that these tariffs from China are a breach of its WTO obligations.
This announcement 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. This challenge will help address barriers to the Chinese market for U.S. farmers, including those in Delaware’s poultry industry.
“Delaware’s poultry farmers and producers are the strongest engines in our local economy and we know they have great potential to do even more, but when they’re shut out of international markets, that potential goes untapped,” said Senator Carper. “China’s hefty tax on American poultry imports is unfair and, while I’m still hopeful that China will right this wrong on its own, we must be prudent and pursue action by the World Trade Organization. I thank Ambassador Froman and his team for their continued work to ensure the global community holds China accountable for its unfair trade practices.”
"The economic health of America’s agricultural sector, including Delaware’s poultry industry, is directly tied to its access to foreign markets," said Senator Coons, co-founder of the Senate Chicken Caucus. "That’s why it is critical for the United States to fight unfair protectionist policies of some of the world’s biggest markets like China. I applaud the Obama Administration for taking action today to challenge China’s continued failure to meet WTO standards. Today’s announcement sends a clear message that the United States will continue to hold China’s feet to the fire until it plays by the rules and opens up its market to our poultry. I will continue to fight to make sure poultry farmers in Delaware and across the country have access to markets around the world."
“The Administration’s actions today are crucial to Delaware’s poultry producers,” said Congressman Carney. “China’s current regulations are unfair and burdensome, cutting out a huge potential market for Delaware farmers. In today’s international economy, we need to ensure everyone’s playing by the same rules. I want to thank Ambassador Froman for bringing this matter to the World Trade Organization and for continuing to promote a level playing field for America’s farmers.”
Background:
China has been imposing anti-dumping and countervailing duties on U.S. chicken since 2010. The U.S. has challenged China’s duties with the WTO numerous times.
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 redetermination that purports additional rationales justify continuing its duties on U.S. broiler products. China has asserted that this redetermination has brought China into compliance with the findings in the WTO Panel Report. Since then, the United States has reviewed China’s redetermination and engaged closely with U.S. stakeholders on next steps. On the basis of this intensive review, the United States considers that the reinvestigation process and the redetermination breach WTO rules and that accordingly, China has failed to bring its measures into compliance with WTO rules.
In today’s consultation request, the United States is making claims under numerous provisions of the WTO Antidumping 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.
This challenge to China’s non-compliance with respect to duties levied on chicken broiler products demonstrates once again the United States’ commitment to ensuring that China strictly adheres to the WTO’s rules of the road.
The U.S. poultry industry is the world’s largest producer and its second-largest exporter of poultry meat. Nearly 18 percent of U.S. poultry production is exported. The U.S. poultry industry employs 350,000 workers and comprises 50,000 family farms.
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