China Investigating U.S. DDGS for Anti-Dumping
Rapid increase of exports of DDGs responsible for Chinese action.
Jason Vance
Published: Dec 30, 2010
China's Ministry of Commerce has released a statement saying it has decided to launch an anti-dumping investigation into distiller's dried grains with or without solubles imported from the United States. China's Anti-Dumping Regulations require the Ministry to investigate the existence and margin of the dumping for such imports from the U.S. and its damage to Chinese Mainland's industry of distiller's dried grains with or without solubles.
"China's investigation of U.S. DDGS imports is surprising and could be disruptive to trade," said U.S. Grains Council President and CEO Tom Dorr. "China's unusual market and supply volatility over the last two years has resulted in new global trade flows. As trade flows change, it should perhaps not be surprising there would be an adjustment period in response to unprecedented demand."
According to USGC Director of Trade Development Rebecca Bratter, in the last three years China has gone from importing no DDGS to importing one to two million metric tons.
"I think that just reflects how dynamic the Chinese market is," Bratter said. "It's a growing market, it's a major economic power and they are going to have an increasing need for protein inputs and resources."
However the incredibly rapid ramp up of imports over that last few years has led China to launch this investigation. This is a bilateral anti-dumping case so at any time once they receive a response from the U.S. industry they can begin to calculate and place punitive tariffs on U.S. products before they have a final determination.
"We hope for a favorable outcome as we want to maintain trade flows with China," Bratter said. "We've been there for over 25 years working with the industry doing capacity building. We consider China to be a critical trade partner and would very much like to continue doing business with them."
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