Mexico said it would hold off imposing anti-dumping tarriffs on chicken imports from the United States pending further investigation into disputed trade practices.

In late January last year, Mexico announced the investigation into chicken leg and thigh imports from the United States, Mexico's top trading partner, following allegations of price gouging by domestic chicken processors.

But the 99-page statement published in the government's official gazette said the investigation was still underway and placed a 30-day deadline for all interested parties in the dispute to present additional arguments to the economy ministry.

"The investigation into unfair trade practices in the form of price discrimination will continue without imposing provisional countervailing duties on imports of chicken leg quarters from the United States," the government said.

Mexican producers have argued since 2007 that below-cost chicken leg and thigh imports from the United States have increased substantially, eating up a larger share of the local market. U.S. consumers prefer chicken breasts and can send the other parts south at a lower cost, the Mexican companies argue.

Mexican imports of U.S. chicken surged nearly 18 percent in 2010 to 980 million lbs (445 million kgs), according to the U.S. Department of Agriculture, and totaled 855 million lbs (388 million kgs) in the first 10 months of 2011.

According to the Mexican government, the amount of chicken leg and thigh imports from the United States in dispute is 570 million lbs (260 million kgs). (Reuters)