Mexico to impose duties on US chicken imports
Aug. 7, 2012
by Meat&Poultry Staff
CELAYA, Mexico — Mexico's Ministry of Economy announced its resolution to an antidumping case involving chicken leg quarters imported to Mexico from the United States.
The case stems from an antidumping complaint filed by Producto Agropecuarios de Tehuacan, S.A. de C.V., Buenaventura Grupo Pecuario, S.A. de C.V. and Bachoco, S.A. de C.V. Mexico began an investigation into allegations by three Mexican poultry companies that the US was exporting chicken leg quarters to Mexico at below-market prices. The investigation was based on the complainants' assumption that chicken parts should be priced the same. Mexico did not immediately impose duties on US chicken leg quarters.
However, in its Aug. 6 decision the Ministry confirmed that dumping had occurred and that the domestic poultry industry was harmed by the sale of chicken leg quarters into Mexico originating from the US that were below production costs. The Ministry will impose anti-dumping duties on imports of chicken leg quarters from the US. But penalties will not be applied immediately until the avian influenza outbreak normalizes. The Ministry will announce the start date of the proposed duties via a public notice.
Bachoco said in a press release that Bachoco and the other companies involved in the dispute disagreed with the Ministry's decision to delay imposing duties on US chicken leg quarters because:
• “Avian influenza H7N3, was contained and did not affect chicken producers.
• Said antidumping duties will be applied exclusively to chicken leg quarters originating from the United States.
• More than 80 percent of the chicken sold by Mexican producers, (mainly as whole chicken) will not be subject to anti-dumping duties."
"The company, as well as all other applicants, recognize the work done by the Ministry of Economy and the UPCI "Unit of International Trade Practices" in defending the rights of the Mexican poultry industry and ensuring equitable conditions throughout this long investigation and have spoken out to continue their efforts to stop the unfair competition and have true integration between the two markets, relying on the final application of anti-dumping duties, which allows the Mexican poultry industry to continue to create thousands of jobs, and benefits consumers by delivering high quality products at a fair price," Bachoco said.