Tuesday, June 30, 2009

China Is Expected to Block Imports of Chicken From U.S (good More For US and Cheaper)

Wall Street Journal

China is expected to ban imports of U.S. chicken in coming days, a move likely to deliver a blow to the struggling American chicken industry and escalate trade tensions between the two nations.

James H. Sumner, president of the Georgia-based USA Poultry & Egg Export Council, said he learned Tuesday from "several importers" in China that the U.S. wouldn't receive any import permits from the country's ministry of commerce starting July 1.

Mr. Sumner said he has informed the U.S. Embassy in Beijing and that it is looking into the matter. There has been no official confirmation from the Chinese government. Representatives for the U.S. trade representative, the U.S. Agriculture Department and the Chinese Embassy in Washington declined to comment.

Mr. Sumner says the potential ban appears to be tied to a provision in the most recent U.S. spending bill that prohibits the USDA from allowing Chinese chicken plants to send poultry products to the U.S. Lawmakers question whether China's chicken processing plants meet U.S. standards.

A ban on U.S. chicken would be the latest example of food safety and trade colliding. In recent months the U.S. has been under pressure from lawmakers and trade groups to crack down on goods coming from China. China has responded with allegations of U.S. protectionism.

The potential ban could be a big blow to the U.S. chicken industry, which has been struggling with high grain prices and a price-depressing oversupply of chicken. Exports had been a bright spot for the industry, and last year China surpassed Russia as the largest destination for U.S. chicken, according to the USA Poultry & Egg Export Council..........

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