China Friday threatened to impose anti-dumping duties on poultry imports from the US to check American firms allegedly selling chicken at low prices.
The threat posted on the website of the Chinese Ministry of Commerce (MoC) said it was mandatory for importers of US poultry products to remit deposits with the customs authorities. However, it did not specify when the duties will come into force.
The proposed duties will mainly hit export of chicken products like wings and feet regarded as a delicacy in China, but not preferred by American consumers. Hence they fetch a higher market price in China compared with the US.
"Chicken feet and wings are not wanted in the US, so they sell them to China, they dump them below cost," said Wang Xiulin, Chinese Poultry Association president.
The duties will vary from one firm to another with the three leading US poultry exporters Tyson Foods having to pay 43.1% in addition to its current Chinese prices, Pilgrim's Pride 80.5% and Sanderson Farms 64.5%.
According to a report carried by state-run Xinhua news agency, an official probe found that China's poultry industry was badly hit as a result of chicken products dumped by US poultry firms. During the first half of 2009, China imported 407 tons of poultry with US firms cornering 90% of the market.
Despite Beijing's public posturing much is being read into the Chinese threat. Earlier this week, US President Barack Obama told Democratic lawmakers that a close vigil would be mounted to ensure that China adhered to the various trade agreements.
For comments and feedback: editorial@rttnews.com