The U.S. government has moved a step closer to imposing duties on imports of generic 2,4-D herbicide from China and India, raising concerns among farm groups about future North American supplies of the herbicide.
Corteva Agriscience filed a petition earlier this year calling for anti-dumping and countervailing duties on imports of 2,4-D into the U.S., alleging that imported versions of the herbicide are subsidized in their originating country and exported to the U.S. at prices lower than in their originating country.
In a preliminary decision issued Sept. 10, the U.S. Department of Commerce proposed countervailing duties on 2,4-D products made in China ranging from three to 28 per cent, depending on the supplier, while imports from India would face duties in the three to six per cent range.
The U.S. International Trade Commission (ITC) is also considering anti-dumping duties, alleging dumping rates of 127 per cent on 2,4-D coming from China and 36 per cent for India.
The National Corn Growers Association, in a news release, says it is frustrated with the Department of Commerce’s recommendation this week.
“Access to this herbicide is critical for corn growers. 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,” says Minnesota farmer and NCGA president Harold Wolle.
With 2,4-D-tolerant soybean varieties increasing in acres across North America, the American Soybean Association is also speaking out against steep import tariffs.
“This decision to raise duties on imports is disappointing for soybean growers nationwide,” says North Dakota soybean grower Josh Gackle, president of the American Soybean Association. “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.”
The Canadian government is facing pressure to align with the U.S. on restricting imports from China in other areas, such as electric vehicles, but there are no signs that Canadian authorities are considering anti-dumping levies on 2,4-D imports. However, the supply chain, with 2,4-D products entering Canada from the U.S., would be impacted if the Americans move ahead with anti-dumping and countervail duties.
The U.S. Department of Commerce is expected to announce its final duty rates early next year, after which the U.S. International Trade Commission would then make its final determination.
