OMAHA (DTN) -- The Commerce Department has issued a preliminary order recommending countervailing duties on imports of 2,4-D from China and India, which account for roughly three-quarters of all 2,4-D herbicide sales in the U.S.
The National Corn Growers Association (NCGA) and the American Soybean Association (ASA) expressed frustration with a recently released recommendation by the U.S. Department of Commerce to impose preliminary countervailing duty rates on imports of the herbicide 2,4-D.
On Tuesday, the U.S. Department of Commerce (DOC) announced the proposed countervailing duties on imports of 2,4-D from China and India as the DOC continues an antidumping investigation into 2,4-D products from the two countries. From Chinese companies, the duties would range from a low of 3.1% for one company but more that 27% for other Chinese exporters. For companies from India, the duties range from 3.28% to 5.29%.
Commerce Department statistics show the U.S. imported 20.6 million pounds of 2,4-D from China last year, valued at $22.9 million, and 15.3 million pounds from India, valued at $21.6 million.
According to EPA, the U.S. uses about 46 million pounds of 2,4-D annually. That means roughly 78% of all 2,4-D sold last year in the U.S. came from China or India.
Corteva Agriscience filed a petition earlier this year, calling for antidumping and countervailing duties on imports of herbicide 2,4-D. Corteva, the sole U.S. producer of 2,4-D, stated in its petition filed in March that China and India were exporting subsidized products, effectively dumping those products on the U.S. market. The subsidized imports were effectively costing Corteva lost sales and revenues and a declining market share for 2,4-D.
Asked for comment by DTN, a spokesman for Corteva provided the company's testimony to the International Trade Commission (ITC) that highlighted excess 2,4-D production in China that continues to grow. Ricardo Garcia de Alba, Corteva's global portfolio leader for Row Crop Herbicide and Nitrogen Management, testified about Chinese production, "We understand that the prices of Chinese 2,4-D are below cost."
The ITC voted in May to continue its investigation into Corteva's petition. Commerce issued a preliminary determination against the Chinese and Indian imports in June. Commerce will make a final determination on its 2,4-D investigation in January, and a final order for countervailing duties could come in March.
Farmers have said that their demand exceeds the domestic supply of the product, and foreign sources help fill this gap, NCGA and ASA noted. Farm groups argued the countervailing duties on imports would cause more harm to farmers who are already paying higher costs for inputs.
"This decision to raise duties on imports is disappointing for soybean growers nationwide," said Josh Gackle, president of the American Soybean Association and a soybean farmer from North Dakota. "We rely on imported generic 2,4-D in combination with other herbicides to manage weeds efficiently before planting. The increased costs could strain our operations during an already difficult time."
Other commodity groups such as the National Association of Wheat Growers, National Barley Growers Association, National Sorghum Producers and U.S. Durum Growers Association also weighed in against the duties.
"Access to this herbicide is critical for corn growers," said Minnesota farmer and NCGA President Harold Wolle. "Because there is only one domestic supplier manufacturing 2,4-D, growers in the U.S. must look to foreign suppliers to help meet our needs. We would welcome ideas from Corteva on how to ensure that this herbicide is available and affordable for American growers."
Also see "US Trade Body Investigates 2,4-D Claim" here: https://www.dtnpf.com/….
Chris Clayton can be reached at Chris.Clayton@dtn.com
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