The United States has filed a complaint against China’s excessive tariffs on chicken imports amid the two nations’ continuous trade grapple that sheds a harsh light on their gradually disintegrating ties.
According to The Wall Street Journal, Washington wants Beijing to open opportunities in their market for the American poultry farmers else the Asian giant will face trade sanctions.
The filing submitted to the World Trade Organization (WTO) indicates that China did not comply with the previous WTO ruling that the tariffs on poultry products, particularly on chicken feet, in China should be removed because they were improperly applied.
Aside from that, China also failed to deliver its duties on anti-dumping and countervailing on American chicken products in compliance with international trade rules, U.S. Trade Representative Michael Froman explained.
Unfair Tariff
"These unfair and unjustified taxes are in direct violation of China's international commitments and tilt the playing field further against America's poultry farmers," said Froman as quoted by The Hill.
According to Froman, China's violation of trade rules denies American farmers a fair shot at earning from global trade, emphasizing that the Obama administration will not tolerate such unfair act.
"American farmers deserve a fair shot to compete and win in the global economy, and this administration will continue to hold China responsible when they attempt to disadvantage our farmers, businesses and workers," he explained.
According to The Hill, the WTO had issued a report on the breach on tariff rules three years ago, something China did not respond to until mid-2014.
At the time, Beijing issued a redetermination on the matter that states justifications on the duties on U.S. chicken while making changes that they deemed to be compliant with the WTO order.
However, the U.S. is still unconvinced that China is not violating international trade rules.
"Trade works when the rules are followed, and it is imperative that China--the world's second-largest economy--lives up to the rules it agreed to when it joined the WTO in 2001," Senate Finance Committee member and Senate Chicken Caucus co-chairman Johnny Isakson said.
U.S. Poultry Industry
According to the outlet, the U.S. holds the biggest percentage of chicken produce all over the world and is the second largest exporter of chicken meat.
The industry provides jobs to over 350,000 workers and earnings for some 50,000 family farms in the entire nation.
Because of this, the country's economic health is directly affected should exports of poultry products experience a slowdown in profit.