China drops anti-dumping probe against U.S. DDGS

by World Grain Staff
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WASHINGTON, D.C., U.S. ­— The U.S. Grains Council (USGC) said on June 21 that China’s Ministry of Commerce announced it has terminated the anti-dumping investigation against U.S. DDGS exports to China.

In the announcement, the Ministry of Commerce stated that the applicants in the case withdrew their petition on May 10, which resulted in the ministry terminating the investigation in accordance with China's anti-dumping regulations.

“As a result, we believe and we anticipate no tariffs will be imposed against DDGS marketed to China from U.S. producers,” said Thomas Dorr, USGC president and chief executive officer.

The anti-dumping petition was initially filed Dec. 28, 2010. The USGC immediately reached out to U.S. stakeholders to organize a response. The council subsequently participated in evidentiary hearings in Beijing and has cooperated fully with the ongoing Chinese disposition of this case.

The U.S. exported 195,000 tonnes of DDGS to China in 2009. That grew to 2.3 million tonnes in 2010, and fell back to 1.6 million tonnes in 2011, following announcement of the investigation. Dorr said in 2012, exports are up nearly 84%.

“There needs to be a two way level of transparency in these market opportunities. It’s important for us to have access to the Chinese markets, but it’s equally important we have a long term insight into what their expectations and demands might be in order that our producers and those that build, sustain and supply our infrastructure our capable of making the necessary investments,” Dorr said.

Dorr thanked the 80 ethanol producers that helped the USGC with the hearings. The USGC said it plans to continue its efforts in China, and work to expand the market opportunity.

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