02/05/10

From Reuters

China to levy anti-dumping duties on US chicken



* China to assess duties of 43.1-105.4 pct on chicken parts

* Rising trade and currency tensions

* US chicken industry's profitable China business threatened


By Lucy Hornby and Niu Shuping

BEIJING, Feb 5 (Reuters) - China will levy heavy anti-dumping duties on U.S. chicken products, its Commerce Ministry said on Friday, a move likely to aggravate trade relations and antagonize one of the few U.S. industries that profitably exports to China.

The ministry's initial investigation showed that U.S. companies had dumped chicken products into the Chinese market, according to the ministry's website (www.mofcom.gov.cn).

The preliminary tariffs were announced a day after China requested a World Trade Organization ruling on European Union duties on shoes made in China. That was the most recent of many cases demonstrating China's embrace of the WTO to keep markets open to the exports on which it depends.

The United States and China are engaged in a series of trade disputes, particularly over the value of the Chinese currency, with President Barack Obama this week vowing to get tough in dealing with complaints that U.S. exports are at a disadvantage.

"The world needs strong U.S.-China economic engagement now, not a ratcheting up of trade tensions," said Michael Barbalas, president of the American Chamber of Commerce in China.

Chicken wings and feet, virtually worthless in the U.S. market, are a delicacy in southern China. Many U.S. poultry producers count on the Chinese market to round out their profits.

"Chicken feet and wings are not wanted in the U.S. so they sell them to China, they dump them below cost," said Wang Xiulin, president of the Chinese Poultry Association.

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Update 02/05/10: The dispute appears to be over chicken Parts, not Farts. Please disregard.