Mexico Will Not Impose Antidumping Duties on US Chicken
August 3, 2012
The Mexican government has announced that it will not impose antidumping duties on imports of U.S. chicken leg quarters in the immediate term because of the negative impact that such duties could have on the economy and on food prices for Mexican consumers.
A final determination by the Mexican Unit of Foreign Trade Practices (UPCI) of the antidumping investigation, which began 18 months ago, will be published early next week in which the Mexican government will conclude that dumping had occurred, but the government will take no current action to impose punitive duties on U.S. imports.
The Mexican Foreign Trade Commission (COCEX), however, has intervened and announced its intention to waive dumping duties on imports of U.S. chicken leg quarters into Mexico, meaning trade will not be interrupted at this time.
Representatives of the National Chicken Council (NCC) and the USA Poultry & Egg Export Council (USAPEEC) met this week in Mexico City with high-ranking officials at the Mexican Department of Economy to discuss the issue.
“We are pleased with the decision by COCEX to prevent implementation of any duties, but we strongly disagree with the finding of dumping,” said NCC President Mike Brown who was part of the delegation. “We continue to maintain that Mexico’s basis for making such a determination is flawed and that international bodies would not support such a finding.”
COCEX is an interagency group comprised of representatives from several Mexican government agencies that reviews such decisions that could impact Mexico’s economy. The group cited the rising cost of staple foods in Mexico, caused in part by the outbreak of highly pathogenic avian influenza in Jalisco as well as high corn prices, as the basis for preventing implementation of the duties. COCEX noted that it would monitor market conditions and could re-evaluate the anti-dumping duties at a later date.
“COCEX’s announcement is a positive development for Mexican consumers and for unfettered trade between the United States and Mexico,” Brown concluded. “We look forward to carefully reviewing the final determination when it is officially announced in the coming days.”
NCC and USAPEEC this week also pledged to continue to work with the Mexican poultry industry to improve relations in efforts to avoid trade disputes and disruptions.