China was to impose an anti-dumping duty as high as 105.4 percent on US broiler chicken products, effective today, the Chinese Ministry of Commerce said yesterday.
China found that the US industry dumped such products on the Chinese market, hurting domestic production, the ministry said.
The tax rate will be 50.3 percent to 53.4 percent for those US producers who cooperated with the investigation and 105.4 percent for those who did not, it said.
“The final ruling is that the there is a causal relationship between the US dumping of broiler products and the losses suffered by the Chinese industry,” the ministry said in Beijing.
China said in April an initial investigation showed the US provides subsidized soybeans and corn to its poultry industry, hurting Chinese producers. On Aug. 31, the government imposed five-year punitive anti-subsidy tariffs after upholding a finding that the US broiler chicken products were subsidized.
Imports by Pilgrim’s Pride Corp will incur a 53.4 percent anti-dumping duty and imports by Tyson Foods Inc 50.3 percent, according to the ministry.
The anti-dumping investigation has been completed, the ministry said in its statement.
Prices of broiler products in China were below cost of production for a long time, suppressing domestic producers’ profit margin, a direct result of large volume of cheap imports, it said.
China consumed almost 800,000 tonnes of US chicken products in 2008, valued at US$722 million, according to the USA Poultry & Egg Export Council.
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