Antidumping ruling will be enforced

by Editor fleischwirtschaft.com
Thursday, August 09, 2012

A resolution published by the Mexico Ministry of Economy in the “Diario Oficial De La Federacion” noted that anti-dumping duties will indeed be imposed on imports of US chicken leg quarters. The duties will not be imposed right away given that the Mexican broiler industry is struggling with the after effects of avian flu, according to CME.

The exact date when the duties will come into effect will be announced in the Diario Oficial (similar to the US Federal Register) at a later date. The decision to impose anti-dumping duties on Mexican imports of leg quarters and leg/thigh meat is final. It is a victory for Industrias Bachoco, one of the applicants that brought the case before the Mexico commission and the largest poultry producer in Mexico.

The US can appeal the decision before binding arbitration at WTO but that is a long process and it is ambiguous as to whether the US would win. The final resolution imposes two tariffs on imports of leg quarters and leg/thigh meat. Imports from some US companies, Simmons, Tyson, Sanderson and Pilgrim’s Pride will be assessed an anti-dumping duty of 25.7%. Imports from all other
US companies will be assessed a duty of 127.5%. The reason for the two-tiered tariff is given in the lengthy final report. The report finds that based on WTO rules and methodology, a tariff of 25.7% would be sufficient to remove injury to the domestic industry. The report noted that the price differential between domestic and imported prices in 2010 was 25.7%.

Mexican officials also noted that based on WTO rules those companies that did not cooperate during the investigation may obtain a less favourable ruling. Per the resolution, the more favorable tariff will apply “to exporters who appeared and provided sufficient information, in the case of all other exporters an antidumping duty equal to the greater of the dumping margins found, which is 127.5%, will apply.

Also important to note is that the tariff will apply not just to leg quarters but to “ legs, thighs
legs attached to the thigh.” Based on USDA data, Mexico will import some 630,000 MT of broiler meat in 2012.
A resolution published by the Mexico Ministry of Economy in the “Diario Oficial De La Federacion” noted that anti-dumping duties will indeed be imposed on imports of US chicken leg quarters. The duties will not be imposed right away given that the Mexican broiler industry is struggling with the after effects of avian flu, according to CME.

The exact date when the duties will come into effect will be announced in the Diario Oficial (similar to the US Federal Register) at a later date. The decision to impose anti-dumping duties on Mexican imports of leg quarters and leg/thigh meat is final. It is a victory for Industrias Bachoco, one of the applicants that brought the case before the Mexico commission and the largest poultry producer in Mexico.

The US can appeal the decision before binding arbitration at WTO but that is a long process and it is ambiguous as to whether the US would win. The final resolution imposes two tariffs on imports of leg quarters and leg/thigh meat. Imports from some US companies, Simmons, Tyson, Sanderson and Pilgrim’s Pride will be assessed an anti-dumping duty of 25.7%. Imports from all other
US companies will be assessed a duty of 127.5%. The reason for the two-tiered tariff is given in the lengthy final report. The report finds that based on WTO rules and methodology, a tariff of 25.7% would be sufficient to remove injury to the domestic industry. The report noted that the price differential between domestic and imported prices in 2010 was 25.7%.

Mexican officials also noted that based on WTO rules those companies that did not cooperate during the investigation may obtain a less favourable ruling. Per the resolution, the more favorable tariff will apply “to exporters who appeared and provided sufficient information, in the case of all other exporters an antidumping duty equal to the greater of the dumping margins found, which is 127.5%, will apply.

Also important to note is that the tariff will apply not just to leg quarters but to “ legs, thighs
legs attached to the thigh.” Based on USDA data, Mexico will import some 630,000 MT of broiler meat in 2012.
stats