Thursday, 29 April 2010

US chicken farmers spitting feathers

China has picked on the humble chicken for the next salvo in the escalating trade war between China and the US.

Given the number of chickens in China it is perhaps surprising that China imports chicken at all given the transport costs and perishability of the said white meat.

Still, a 31.4% tariff is not to be sniffed at. Even without a tariff it is hard to believe that US chicken is competitively priced to actually have a market in China. However big that market is it is about to get smaller.

US chicken farmers will be spitting feathers (cheap gag) and US subsidies might have to get larger.

China to impose new tariffs on US {FT]
China announced yesterday it would impose a second round of tariffs on imports of US chicken products of as much as 31.4 per cent.

The commerce ministry said the tariffs were a response to what it called unfair subsidies given to US poultry farmers. The duties come on top of charges of up to 105.4 per cent placed on poultry two months ago because of alleged dumping .

Economic friction between the two countries had appeared to be relaxing after the US Treasury delayed its decision over whether to label China a currency manipulator.

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2 comments:

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Dezza said...

Just FYI, I know China imports a lot of chicken's feet and other internal organs of the chicken..stuff that regular Americans throw away anyway.

Also US chicken is sold in China/HKG at a premium price for those who want a more trustworthy product..