US, Mexico break off poultry talks
April 18, 2012
by Meat&Poultry Staff
WASHINGTON – Talks between the United State and Mexico regarding a poultry anti-dumping case filed by Mexican poultry producers have collapsed, according to a report by the Journal of Commerce.
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. After announcing preliminary results, Mexico proposed duties on US poultry ranging from 64 percent to 129 percent. Mexico’s action is based on the assumption that chicken parts should be priced the same. Mexico did not immediately impose the duties, although it had the power to do so. A final decision on the duties is expected by August.
Representatives of the poultry industry have been trying to negotiate an import quota level in lieu of trade litigation, according the Journal of Commerce. An import quota would put a ceiling on chicken exports to Mexico, but it also would allow trade to continue uninterrupted.