U.S. Senators Urge USTR to Fight Mexican Poultry Antidumping Policy
A group of 16 U.S. Senators voiced concern over Mexican poultry antidumping policy, in a letter to U.S. Trade Representative Ron Kirk. At issue is preliminary results announced by the Mexican ministry that would impose duties on U.S. poultry ranging from 64% to 129%. The duties haven't yet been applied, but a final decision will have to be reached by August. According to the letter, the duty is based on the “average cost of production,” and uses a flawed assumption that every part of the chicken should be priced the same, which would mean premium parts would be valued at the same price as the chicken feet.
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Creates Ominous Example According to the letter, the Mexican antidumping action will deprive poultry industry of the market access provided under the North America Free Trade Agreement (NAFTA). This case sets an ominous example that must not be repeated throughout the protein sector and the approach could encourage others in Mexico to institute frivolous antidumping actions against our beef, pork or dairy sectors, said the Senators. With U.S. poultry exports to China significantly decreased due to frivolous antidumping duties, Mexico is our most important market, importing nearly 250,000 metric tons in the most recent year valued at nearly $270 million, said the letter. Should this case lead to a formal consultation, the U.S. poultry industry will suffer a huge loss due to the historically lengthy legal process employed by the World Trade Organization, the Senators said.
Bipartisan Group
Signers of the letter were Sens. Mark Pryor (D-Ark.), Chris Coons (D-Del.), Barbara Mikulski (D-Md.), Johnny Isakson (R-Ga.), Ben Cardin (D-Md.), Thad Cochran (R-Miss.), Roger Wicker (R-Miss.), Kay Hagan (D-N.C.), Roy Blunt (R-Mo.), Richard Lugar (R-Ind.), John Boozman (R-Ark.), Robert Casey (D-Pa.), Jeff Sessions (R-Ala.), Daniel Coats (R-Ind.), Tom Carper (D-Del.) and Saxby Chambliss (R-Ga.).