GENEVA: China breached the rules of global commerce by imposing duties on imports of US chicken, the World Trade Organisation ruled yesterday, saying Beijing must fall into line.
A WTO disputes settlement panel said that China’s actions had been inconsistent with rules that allow countries to impose duties when their trade partners dump goods on their markets.
Dumping is the practice of selling goods at cut-price in order to increase market share, which can harm domestic producers.
The WTO panel said that China’s chicken duties were found to have “nullified or impaired benefits accruing to the United States” under international trade accords.
The issue has been a major bone of contention in the often tense trade relations between the world’s two largest economies.
It concerns chicken ‘broiler products’ — chickens less than 13 weeks old — imported from the United States. China imposed the duties in August 2010, claiming that the chicken products were subsidised in the United States and then sold at less than fair value on the Chinese market. AFP
