(Yicai Global) Feb. 27 -- China's Ministry of Commerce (MOFCOM) decided today to revoke antidumping and countervailing duties levied on imported white feather chicken products from the US. The measures were not set to expire until 2021.
China Animal Agriculture Association (CAAA), the claimant in the antidumping case filed an application to revoke the antidumping duty (AD) and countervailing duty measures in December. After examination, the Ministry found continuing the above measures unnecessary and decided to cease collecting these duties on US white broilers.
On behalf of the domestic white chicken sector, CAAA applied for AD and VCD investigations in August 2009 with MOFCOM. MOFCOM thereafter began collecting CVD and AD duties on Aug. 29, 2010 and Sept. 26, 2010 on US white chickens, with an implementation period of five years. Though the ministry did not disclose the reason for CAAA's about-face, the WTO conducted a review of the ruling and directed China to lower the tariffs or appeal within 20 days, as Reuters reported. The US repeatedly appealed to the World Trade Organization to grant access for its white broilers to the Chinese market, claiming Beijing breached its WTO commitments by levying unfair tariffs.
Speculation also links Beijing's climbdown to the forthcoming US visit of its economic czar, Liu He, widely seen as a mission to defuse the budding trade war that started when President Trump imposed penalties on Chinese washing machines and solar panels.