US Trade Body Investigates 2,4-D Claim

LINCOLN, Neb. (DTN) -- Anti-dumping and countervailing duties on 2,4-D imports from China and India moved one step closer to approval Friday as the U.S. International Trade Commission voted to continue investigating in response to a petition filed by Corteva Agribusiness LLC in March.

Corteva claimed in its petition filed on March 14, 2024, that 2,4-D imports from China and India were injuring or threatening to injure the U.S. ag chemical industry.

Corteva said in its original petition that producers of the herbicide from the two countries were exporting subsidized products into the U.S. Dumping takes place when a foreign producer sells a product in the U.S. at a price below a producer's sale price in its country of origin.

During a public hearing on the petition, the National Corn Growers Association expressed opposition to duties for fear they could lead to higher prices and shortages for U.S. farmers.

"We are disappointed that ITC did not listen to the feedback from farmers about how harmful these tariffs could be to rural America," Minnesota farmer and NCGA President Harold Wolle said in a statement. "Corn prices are already low and input costs have been rising. This decision will only compound our problems."

According to a news release from the commission Friday, the U.S. Department of Commerce's preliminary countervailing duty determinations are due on or about June 27, 2024, and its preliminary antidumping duty determinations on or about Sept. 10, 2024.

NCGA said in a news release that imports "covered by this case are the major sources of supply other than Corteva, which is the only U.S. manufacturer, and that America's farmers cannot rely upon a sole domestic supplier of 2,4-D to meet nearly all the market's needs."

NCGA said duties on 2,4-D imports from China and India "would intensify what is already a difficult period" for many growers as key input costs continue to increase.

USDA has projected record-high farm production cash expenses for 2024. At the same time, USDA has projected total cash receipts for crops in 2024 to be 11.7% lower than in 2022.

Corteva did not respond to DTN's request for comment at press time.

"NCGA intends to continue to engage in this case as it goes to the next stage, including the final phase at the U.S. International Trade Commission early next year," NCGA said in a statement.

According to Corteva's petition, Chinese and Indian 2,4-D made up 81% of the chemical's imports into the U.S. Corteva is the sole U.S. producer of 2,4-D.

That petition estimates the dumping margin for 2,4-D is between 142% and 388% for China and 55% to 139% for India. Because of the dumping, Corteva said, U.S. producers "continually lost sales and revenues" and that led to Corteva's lost market share and declining sales.

On April 18, 2024, the NCGA, along with the National Association of Wheat Growers, National Barley Growers Association, National Sorghum Producers, U.S. Durum Growers Association and the American Soybean Association, sent a letter to David S. Johanson, chairman of the U.S. International Trade Commission, asking him to vote against the petition.

"Given the significant burden these proposed tariffs would place on America's farmers and rural communities, including supply shortages and delays, we encourage you to vote negative at the preliminary stage of this investigation on Corteva's petition," the groups said.

"Corteva's material damage, as claimed by the company, does not come close to the harm this case will cause American farmers."

Read more on DTN:

"NCGA Warns 2,4-D Duty Hurts Farmers," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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