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China defends its anti-dumping meansures on U.S. chicken products

(Xinhua)

16:45, September 21, 2011

BEIJING, Sept. 21 (Xinhua) -- China on Wednesday defended its anti-dumping and countervailing measures on imports of U.S. poultry products, saying the policies are legal and in line with World Trade Organization (WTO) rules.

"China believes its anti-dumping and countervailing measures on U.S. chicken products are in accordance with the law and conform to WTO rules," the Ministry of Commerce (MOC) said in a statement on its website.

China's official response came after the United States filed a complaint with the WTO challenging duties imposed by China after Washington raised U.S. import barriers to Chinese chicken products and tires.

"The Chinese side will carefully study the U.S. request for consultations and properly handle the issue according to the WTO dispute settlement procedures," said the statement.

U.S. companies were accused of selling chicken in China at below-market prices and of receiving government subsidies, but the United States said China did not follow World Trade Organization rules in its dumping and subsidy investigations.

China began imposing anti-dumping duties of between 50.3 percent to 105.4 percent on imports of U.S. chicken products with a term of five years since September 2010.

The MOC concluded U.S. producers had received improper government subsidies for their exports to China and hurt China's domestic industry.

According to WTO procedures, China and the United States need to first try to resolve the trade dispute through consultations. If they fail to reach any agreement within 60 days of starting talks, a WTO panel will hear the case at the request of the United States.

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