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No Import Duties Will be Applied by Mexico on US Chicken

2 August 2012, at 12:33pm

MEXICO - The federal government has announced that no anti-dumping duties will be applied to imports of chicken legs from the US, despite what it describes as unfair practices by US exporters. The reason given for the decision is the current high chicken prices in the market resulting from speculation following the recent bird flu outbreaks in the state of Jalisco.

Mexico’s economics ministry reports that the International Trade Commission (COCEX) is supporting the proposed Final Resolution of the anti-dumping investigation on imports of chicken leg quarters originating in the United States.

In the Final Determination, the Department of Economics concludes that there is an unfair practice by US exporters. However, the situation with avian influenza (subtype H7N3) in poultry has led to price increases not explained by market fundamentals, so a proposal from the International Trade Practices Unit (UPCI) will not apply countervailing duties set out in the resolution.

COCEX is to analyse the evolution of this market; the application of anti-dumping duties will require additional review by the Commission.

The investigation by the UPCI involved participation by producers and exporters of the United States, as well as Mexican producers and importers. The Ministry of Economy offered the same opportunities to all stakeholders including the Government of the United States to present their arguments and evidence, made technical information meetings and held a public hearing.

The Ministry of Economy has said it will continue to support domestic producers of chicken and continue to promote the commercial integration of the markets of Mexico and the US in this sector for the benefit of consumers in both countries. The final decision will be published shortly in ‘Diario Oficial de la Federación’, the official journal of the federation.