China began imposing anti-dumping duties and countervailing duties on broiler products from the U.S in 2009, alleging that the U.S. was subsidizing poultry production and then flooding China’s domestic market with low cost chicken products, causing the sale of domestic poultry to decline (a practice called “dumping”). In 2011, after discussions with China failed to settle the dispute over these duties, the U.S. requested that the WTO resolve the matter.
After review, the WTO DSB Panel stated that China did not give the U.S. adequate facts or calculations of how they determined the effects of the alleged dumping. In addition, the Panel found that China acted inconsistently with numerous other articles of the Anti-Dumping Agreement and SCM Agreement. The Panel recommended that China conform to the agreements or face potential retaliations.
China has the ability to appeal this resolution within 60 days. If appealed, the Appellate Body of the WTO will review the Panel’s findings and make a determination within 90 days. If China does not appeal and does not conform to the agreements in accordance with the WTO’s findings, then the U.S. and other parties involved may impose retaliatory measures.
Written by Sarah L. Doyle - Research Assistant
The Agricultural Law Resource and Reference Center
August 5, 2013