Why Won't Chicken Little Cross the Pond?: China Announced Preliminary Antidumping Duties on U.S. Chicken Products
On February 4, 2010, China announced its preliminary determination of dumping in respect of chicken products from the United States. China launched the dumping investigation in September 2009 after the United States imposed special safeguard duties on tyres from China. Dumping is the selling of goods below domestic (U.S. in this case) selling prices or less than cost of production + general selling and Administrative expenses + reasonable profits.
A preliminary investigation concluded U.S. exports of chicken products were being sold at improperly low prices that harmed Chinese competitors. As a result, China will impose antidumping duties at a preliminary rate of 105.4% for most imports. A few companies that cooperated in the investigation will receive lower rates. Tyson Foods Inc. will be charged 43.1% (the lowest rate), while Pilgrim's Pride Corp. will pay 80.5%.
It will be interesting to see what will be the results in the parallel autos antidumping investigation in China. Trade Lawyers Blog understands that U.S. auto representatives were in China this past week. Please stay tuned.
