China Fails at WTO on Chicken Restrictions

A WTO panel has sided with the US in its row with China over trade remedies being imposed on imported poultry products, officials announced last month. The global trade arbiter’s annual August recess proved to be a busy few weeks on the disputes front, with three new cases filed in a matter of weeks, along with the establishment of a panel in the row between Brussels and Beijing on steel imports.

WTO panel grants US victory in China trade remedy dispute

A WTO panel has ruled primarily in favour of the US in its row with China on the latter’s anti-dumping and anti-subsidy duties on imports of US chicken “broiler” products, with the findings distributed to members on 2 August. (DS427)

Broiler products include nearly all chicken products, aside from live, cooked, and canned chicken. The Chinese duties at issue entered into effect in late 2010.

The original complaint had largely focused on procedural concerns in Beijing’s trade remedy investigations, along with the substantive analysis conducted by the Chinese Ministry of Commerce (MOFCOM).

“This decision sends a clear message that the Obama Administration can fight and win for American farmers, businesses, and workers in the global trading system, ensuring that America gets the benefit of the rules and market access we have negotiated in our international trade agreements,” said US Trade Representative (USTR) Michael Froman in response to the ruling.

China, for its part, has said that it will “evaluate seriously the panel’s report, and will handle the follow-up work in line with the dispute settlement procedures.”

Both parties have up to 60 days to appeal the results of the panel ruling. If an appeal is filed, the Appellate Body will be able to revise aspects of law - such as legal interpretation - but may not revisit the facts of the case.

Panel to hear EU-China steel case

A WTO panel was also established last month to hear the EU’s complaint over China’s anti-dumping duties on imports of high-performance stainless steel seamless tubes (HP-SSST) from the 28-nation bloc. (DS460)

This was the EU’s first panel request in the case, which China did not block. Under WTO rules, Beijing - or any other member - has the option of rejecting a first panel request, but not a second. A separate dispute on the subject has also been filed by Japan, which was also hit by the Chinese duties; the latter case is already at the panel stage. A single panel is likely to hear both cases.