A WTO appellate panel ruled that India violated fair-trade rules by barring imports of U.S. poultry, eggs and hogs as a way to prevent entry of avian influenza. The poultry industry estimated sales of poultry to India could rise quickly to $300 million a year once India’s restrictions are removed. The case began eight years ago and the United States won a first-round WTO ruling in 2014. The United States said India excluded U.S. products in order to give a leg up to its own farmers.
U.S. officials said the victory, arriving in the midst of the worst U.S. epidemic ever of avian influenza, was a signal to trading partners to act reasonably when a supplier is hit by livestock disease. Trade restrictions should be based on scientific standards that include tailoring any trade restrictions to apply to the region where the disease is present, rather than a nationwide blanket ban.
Agriculture Secretary Tom Vilsack said “this decision serves to encourage USDA’s efforts to maintain open markets for U.S. poultry based on international standards.” Dozens of countries have restricted or banned U.S. poultry products in reaction to the epidemic, including some of the largest customers.
“This ruling should send a signal other countries that have placed similar bans on U.S. poultry that they are inconsistent with WTO rules and with guidelines established by the World Organization for Animal Health (OIE),” said the trade groups National Chicken Council and the USA Poultry and Egg Export Council. Usually, 20 percent of U.S. poultry meat is exported.
The USDA estimates broiler exports will drop by 6.8 percent this year because of bird flu and the stronger dollar. The monthly U.S. Livestock and Meat International Trade report, updated on Thursday, listed broiler exports of 2.2 billion pounds for January through April, compared to 2.4 billion pounds in the same period in 2014. Shipments to China and South Korea, which barred imports because of the epidemic, were less than one-tenth of their totals for the first four months of 2014.