September 7, 2011
www.gfb.org
Vol. 29 No. 36
U.S., MEXICAN POULTRY OFFICIALS WORK TOWARD RESOLVING DISPUTE Poultry companies from the United States and Mexico have begun working toward a settlement in an anti-dumping dispute. At an Aug. 31 meeting in Mexico City, the U.S. Poultry and Egg Export Council (USAPEEC) presented a proposal to prevent trade disruptions while addressing concerns of the Mexican government and its poultry industry. According to a USAPEEC press release, reactions were favorable. The conciliatory hearing called by the Mexican Unit of International Trade Practices (UPCI) came after multiple requests by lawyers of the U.S. side, according to USAPEEC President Jim Sumner. The hearing was presided over by UPCI chief Hugo Perezcano. “Our legal team is quite pleased with the results of the hearing,” said Sumner. “We accomplished everything we had hoped for and more. We look at the conciliatory hearing as the beginning of the process to start our discussions with the petitioners to develop a workable settlement.” UPCI began investigating the claims in February after three Mexican poultry-producing companies petitioned for an anti-dumping investigation to be conducted, claiming that U.S. companies were exporting leg quarters to Mexico at below-market prices. The USAPEEC and 37 U.S. poultry companies are challenging those claims. Perezcano said that UPCI would extend the conciliatory hearing process, a seldom-used mechanism under Mexican trade law that is intended for working toward resolution of trade disputes. He encouraged both sides to continue working toward a settlement, though he indicated that the anti-dumping investigation would continue. The preliminary determination of the investigation is scheduled to be published on Sept. 30, and it will address whether the three Mexican companies suffered damage to their business as a result of practices by U.S. poultry companies, whether there was dumping and whether interim duties will be assessed on U.S. companies exporting leg quarters to Mexico. The USAPEEC expects the determination to be an indication of how seriously the Mexican government takes the allegations of dumping. Georgia is the No. 1 poultry-producing U.S. state. According to statistics compiled by the University of Georgia, broilers produced in Georgia had a farm gate value of more than $4.4 billion in 2009. More than 400 million metric tons of U.S.-produced broiler meat was sold in Mexico in 2010, making it the second-largest export destination for U.S. poultry.