Thursday, September 13, 2012

Australia halts the anti-dumping investigation on Chinese glyphosate formulations

After nearly six months' investigation, Australian Customs and Border Protection Service (CBP) which initiated anti-dumping investigation on several Chinese glyphosate formulations in Feb. 2012 announced on 2 Aug., 2012 that it will halt the anti-dumping investigation on Chinese glyphosate formulations on the grounds that no anti-dumping evidence is showed in the investigation results, according to CCM International’s  August issue of Crop Protection China News.

Appealed by Nufarm Limited and Accensi Pty Ltd., manufacturer of formulated glyphosate in Australia, four types of imported formulations from China to Australia with HS code of 38089300, namely glyphosate 360 (41% glyphosate IPA), glyphosate 450 (51% glyphosate IPA), glyphosate 570 (62% glyphosate IPA) and glyphosate 680 (the formulated dry form 680g/kg SG), have been involved in the investigation.

Although facing anti-dumping was considered to be a really big deal for domestic glyphosate enterprises, the anti-dumping investigation initiated by Australia did not seem to bother domestic glyphosate enterprises much.

"It will somehow bring a positive influence to our company's glyphosate business but not much because Australia is not our main overseas market. The export value of our glyphosate products to Australia was merely USD4 million in 2011, accounting for 0.19% of the total glyphosate revenue," said Zhejiang Wynca Chemical Industry Group Co., Ltd., one of the largest glyphosate producers in China which won the long-run glyphosate anti-dumping case initiated by the EU recently. 

Other domestic glyphosate giants, such as Jiangsu Yangnong Chemical Co., Ltd. and Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., expressed that they didn't directly export glyphosate to Australia, so their glyphosate business will not be affected much by Australia's decision to halt investigation.

As a counter party against the anti-dumping investigation, the written protest from Pacific Agriscience Pte Ltd. (Pacific Agriscience), a Singapore-based agrichemicals enterprise in Australia, helped a lot in the process of anti-dumping investigation on Chinese glyphosate formulations.

Representing the suppliers of Australian agrichemicals, Pacific Agriscience appealed to the CBP in March 2012 that since most of glyphosate formulation products imported from China were qualified products of glyphosate 450 which accorded with the standards set by Australian pesticides and veterinary medicines authority, those products that were appealed by Nufarm Limited and Accensi Pty Ltd. didn't constitute dumping in Australia.

In the defense of Pacific Agriscience, the glyphosate formulation products originated from China from Jan. 2011 to Dec. 2011 did not like those products from the market of Australia. So far, the mainstream glyphosate formulation products in Australia are glyphoste 450, glyphoste 510, glyphoste 540 and glyphoste 570, but those in China are 10% glyphosate SL which are extracted from glyphosate TK. Thus, there is no comparability among the products imported from China and those on the market of Australia.

Additionally, although it seemed to be very familiar outwardly with the products, such as glyphosate 360 (41% glyphosate IPA) and glyphosate 680, from the market of China and Australia, there were indeed differences in the surfactants of the products. Manufactures in China didn't use ethoxylated tallow amine in 41% glyphosate IPA products which Monsanto and most Australian glyphosate manufacturers used as surfactants.

The cancellation of the anti-dumping investigation this time is considered to be another typical winning case that domestic glyphosate enterprises can take the example of when facing glyphosate anti-dumping investigation in the future. Plus, frequent anti-dumping investigations on domestic glyphosate products also alert domestic glyphosate producers to further enhance international competitiveness and build up self-owned brands, rather than just rely on seizing market with low price.

Source: Crop Protection China News 1215

Content of Crop Protection China News 1215
Zhongshan fails in reformation of designated sales of highly toxic pesticides
Australia halts the anti-dumping investigation on Chinese glyphosate formulations
Seed industry + pesticide industry: ready for combination?
Noposion’s performance continues to slide in H1 2012
Nutrichem vigorously promotes Huapont's performance in H1 2012
Shandong Lubei plans to construct pesticide factory in Myanmar
98% thiamethoxam TC newly registered by two domestic enterprises
Prices of imported pesticides increase
Third generation of armyworm seriously outbreaks in China

Crop Protection China News, a monthly publication issued by CCM International on 15th&31th of every month, offers timely update and close follow-up of China’s Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development

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