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China launches anti-dumping probe against US feed ingredient
January 12, 2016, 1:59 pm

China is the world's top buyer of DDGS, a protein-rich by-product of corn ethanol that is used as a substitute for corn and soymeal in animal feed [Xinhua]

China is the world’s top buyer of DDGS, a protein-rich by-product of corn ethanol that is used as a substitute for corn and soymeal in animal feed [Xinhua]

China’s Ministry of Commerce (MOC) has formally launched anti-dumping and anti-subsidy probes into an animal feed ingredient, distiller’s dried grains (DDGS) imports from the US.

Chinese producers are also seeking countervailing duties, also known as anti-subsidy duties, on the DDGS imports.

They claimed that DDGS were sold to China at prices “below normal value” and hurt the domestic industry, the MOC said on its website on Tuesday.

Chinese producers also argued that the DDGS were subsidized by the US government under as many as 42 subsidy programs, according to the MOC.

China is the world’s top buyer of DDGS, a protein-rich by-product of corn ethanol that is used as a substitute for corn and soymeal in animal feed. China relies on imports for almost all of its DDGS needs, with most of the shipments coming from the United States, the world’s top exporter.

The investigations into DDGS with or without solubles, should last no more than a year under normal conditions, or can be extended to one and a half years under special circumstances, said the Chinese Ministry of Commerce.

Chinese imports of DDGS in the first ten months of 2015 came to 5.9 million tonnes, up 14.3 per cent from the same period a year ago.

China previously launched an anti-dumping investigation into DDGS imports from the United States in late 2010, later extending the probe before dropping it in mid-2012.

BRICS members China, India and Brazil have also been forced to use the WTO in their disputes with the United States over farm subsidies.

 

TBP and Agencies