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Mexican agency decides anti-dumping case on U.S. chicken imports
Story Date: 8/8/2012
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Source: Andre Sulluchuco, MEATINGPLACE, 8/7/12
The Mexican Ministry of Economy decided today in favor of Mexican poultry companies in the anti-dumping case on U.S. chicken leg quarters imported into Mexico, but decided to temporarily withhold penalties due to domestic avian flu concerns.
This case was initially brought about by Producto Agropecuarios de Tehuacan, S.A. de C.V., Buenaventura Grupo Pecuario, S.A. de C.V. and Industrias Bachoco, S.A. de C.V., who claimed unfair practices in price discrimination.
The Ministry recognized the existing dumping conditions, along with poultry products being sold below production costs. It decided that penalties would not be applied temporarily, however, due to concerns over Avian Influenza virus type A (subtype H7N3) and until the situation is normalized.
The Ministry of Economy will soon announce when the penalties will be applied.
Industrias Bachoco and the other companies disagreed with the decision to postpone applying antidumping duties temporarily since:
Avian influenza H7N3 was contained and did not affect chicken producers.The antidumping duties will be applied solely to U.S. chicken leg quarters. More than 80 percent of chicken sold by Mexican producers will not be subject to anti-dumping duties.Representatives of the National Chicken Council (NCC) and the USA Poultry & Egg Export Council (USAPEEC) met this week in Mexico City with high-ranking officials at the Mexican Department of Economy to discuss the issue.
“We are pleased with the decision by COCEX to prevent implementation of any duties, but we strongly disagree with the finding of dumping,” said NCC President Mike Brown who was part of the delegation. “We continue to maintain that Mexico’s basis for making such a determination is flawed and that international bodies would not support such a finding.”
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