Last month, Corteva Agriscience filed an anti-dumping and countervailing tariff petition with the International Trade Commission (ITC) for 2,4-D herbicide imported from China and India.
Product dumping involves exporters selling products to the U.S. for less than the cost of production in the countries being sold to—a practice considered unfair in international trade.
According to Corteva’s petition, combined imports from the two countries totaled just over 14,500 tons in 2021, representing 98% of all 2,4-D imported to the U.S., totaling nearly $34 million.
“All in all, we expect roughly 100,000 tons of increased production from China, which represents a substantial portion of the current market,” said Ricardo Garcia de Alba, global leader at Corteva Agriscience. “At the same time, import volumes from China and India increased by 171% and 292% respectively and 195% cumulatively from 2021 to 2022."
It is important to note that Corteva is currently the only U.S. manufacturer of 2,4-D, and the company produces the herbicide in Michigan at Corteva’s Midland facility — the former Dow Chemical site.
Last week, the National Corn Growers Association (NCGA) President Harold Wolle, opposed Corteva's petition, stating that the tariffs would limit the production of the herbicide and raise prices for farmers.
“The scenario under consideration has the potential to limit imports of an important product, raise its price, and create a supply shortage, all while raising the cost of production in an already tight market,” Wolle said in a statement. “Farmers are price takers, not makers in selling our commodities, and closely managing our production costs is crucial to our success. Thus, tariffs on these products would create an even more difficult economic scenario for me, my family, and the farmers I represent.”
NCGA noted companies like Corteva Inc. provide valuable innovations to farmers but that it is important that growers have access to imported products as well.
“We are thankful companies like Corteva have invested in new technologies, including seed traits and herbicides, that allow us to continue producing more effectively and efficiently every year,” said Wolle. “However, farmers simply cannot rely upon a sole supplier for nearly all of our 2,4-D needs. That will undoubtedly lead to shortages and delays in an industry that must have timely delivery.”
According to the NCGA statement, the ITC will rule within 45 days if 2,4-D imports hurt the U.S. industry. If the ITC rules in favor of Corteva’s petition, the Department of Commerce will calculate preliminary import duties.
Yorumlar