The World Trade Organization's ruling in favor of the U.S. in the Chinese antidumping case will be good for the U.S. poultry industry, but it could be a year or more before its benefits are seen, Tyson Foods CEO Donnie Smith said.
"It could take a year or so before we see any actual tariff reductions. If and when that happens, it would have a positive effect on our business, but that will likely be a 2014 event," Smith said on August 5 during a conference call to review Tyson Foods' 2013 third quarter financial results.
The World Trade Organization on August 2 ruled in favor of the U.S. in a dispute where China imposed antidumping tariffs that restricted U.S. chicken exports. The World Trade Organization determined that the antidumping tariffs imposed by China on U.S. chicken exports were inconsistent with international trade rules.
The Chinese antidumping case dates back to 2010, after China accused the U.S. of dumping and imposed tariffs on imports of chicken products. In the Chinese antidumping case, China alleged U.S. chicken producers benefited from subsidies and were exporting poultry at unfair prices. U.S. poultry interests quickly appealed to the World Trade Organization, who eventually sided with the U.S.