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WTO Rules on China's Dispute with US

by 5m Editor
30 September 2010, at 8:48am

GLOBAL - The World Trade Organization (WTO) in Geneva, Switzerland has ruled in favour of China in its dispute over poultry meat imports to the US.

The WTO issued a report of the panel yesterday (29 September), supporting China over its complaint against measures taken by the United States which have affected imports of poultry from China.

According to official sources in China, the panel ruled that Section 727, the Omnibus Appropriations Act of 2009, applied by the US had effectively prohibited the lifting of the ban on poultry imports from China, and inconsistent with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement).

The panel concluded that the United States trade regime has not acting in accord with the specified provisions of the SPS Agreement and the GATT 1994, and has 'nullified or impaired benefits accruing to China under those agreements'.

In 2004, China and the United States stopped importing poultry products from each other for fear of the bird flu. China had called off the ban on poultry imports from the United States when the situation was relieved.

Access of Chinese poultry to the US market is still blocked because of the application of Section 727 passed by the US congress, which restricted the United States Department of Agriculture (USDA) and its agency, the Food Safety and Inspection Service (FSIS) from using funds allocated by the US Congress to create a rule to lift the poultry ban on China.

At the request of China, a panel was established by the WTO on 23 September 2009 to investigate the case.

Further Reading

- You can view the conclusions and recommendations of the WTO Panel by clicking here.