From Reuters:
China said on Friday it will slap heavy anti-dumping duties on U.S. chicken parts, a move likely to aggravate trade ties between two of the world's most important economies at a time of strained political relations.
The Chinese Commerce Ministry's initial investigation showed that U.S. companies had dumped chicken products into the Chinese market, according to the ministry's website (www.mofcom.gov.cn).
...
Tyson Foods (TSN.N), an active investor and lobbyist in China, got the lowest duty of 43.1 percent. Pilgrim's Pride Corp (PPC.N) was hit with an 80.5 percent duty. Most other firms, including Sanderson Farms (SAFM.O), face a 64.5 percent duty.
Those that did not appeal the finding would pay duties of 105.4 percent, the ministry said.
The duties are high and they will have a real impact:
... the USA Poultry & Egg Export Council said the American poultry industry was "deeply disappointed" by China's move.
The tariff decision disregarded facts provided by producers and "will virtually eliminate U.S. chicken exports to China for the foreseeable future," the lobby group said in a statement.
More on the product:
Chicken feet and wing tips, virtually worthless in the U.S. market, are a delicacy in southern China. Many U.S. poultry producers count on the Chinese market to round out their profits.
Chicken feet and wing tips fetch about 2 U.S. cents per pound in the United States, but land in China at about 42 U.S. cents - a figure that Chinese rivals say represents the cost of the freight only.
So will this be enough for the U.S. to challenge an anti-dumping duty at the WTO, something it rarely does? Here's the official U.S. reaction:
The United States Trade Representative was muted in its response, saying it would consult with U.S. producers as it analyzed China's move.
"USTR is following the investigation closely, and we will want to ensure that MOFCOM follows the applicable WTO rules," spokeswoman Carol Guthrie said in a statement.
