When the World Trade Organization (WTO) formally adopted the August 2 ruling that favors the U.S. poultry industry in a dispute where China restricted U.S. chicken exports, it was not only good for opening up trade to China, but trade to other nations as well. The ruling was formally adopted by the WTO on September 25.
"It's a very important signal to other markets to open to our exports and not think about trying to apply kind of restrictive WTO inconsistent measures," Tim Reif, general counsel for the U.S. Trade Representative's Office, said in a broadcast with Rod Bain of the United States Department of Agriculture (USDA).
In the ruling, China's imposition of duties on U.S. broiler products was determined to be in violation of international trade rules. The 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 WTO to resolve the situation.
With the report now formally adopted, China must comply with WTO obligations. Chinese officials have agreed to not appeal the ruling.
Prior to the ruling, Reif said, U.S. poultry exports to China had been reduced by as much as 90 percent.