US Victory in WTO Poultry Case

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October 15, 2014

    The U.S. poultry industry could see a $300 million increase in exports after a World Trade Organization (WTO) panel ruled on October 15, 2014 that India’s ban on poultry products violated the Agreement on the Application of Sanitary and Phytosanitary (SPS) Measures.  The affected products include domestic, captive and wild birds, unprocessed meats from birds, eggs, live pigs, and other byproducts from birds. The panel ruled in favor of most of the U.S. complaints brought to the WTO in 2012, which claimed India unfairly banned U.S. poultry products.  U.S. Trade Representative Michael Froman declared, “This victory affirms the Administration’s commitment to ensuring WTO Members play by the rules, and that America’s farmers, workers and businesses get the fair shot they deserve to sell Made-in-America goods under WTO rules.”

    In their decision, the panel ruled that India violated SPS because it banned all US poultry even though there was only a contained outbreak of the low pathogenic avian influenza (bird flu) in Virginia back in 2012.  SPS states, “Members shall, in particular, recognize the concepts of pest — or disease-free areas and areas of low pest or disease prevalence.”  Therefore, India should not have banned all U.S. poultry products when the outbreak was only found in Virginia.  India also violated another component of SPS that dictates that measures must be “adapted to the sanitary or phytosanitary characteristics of the area — whether all of a country, part of a country, or all or parts of several countries — from which the product originated and to which the product is destined."  

    Despite India’s opposition, the panel ruled that there was no scientific basis for restricting the poultry products from the United States as required by SPS and the restrictions were not based on relevant standards set by the World Organization for Animal Health.  The panel also found that India violated SPS by “discriminat[ing] between Members where similar conditions prevail, including between India’s own territory and that of other Members.”  The panel stated, “India has applied its measure in a manner that constitutes a disguised restriction on international trade.”

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