The United States International Trade Commission (USITC) announced a final decision on the 20th, concluding that Chinese xanthan gum imports have caused harm or injury to domestic U.S. industries. As a result, the U.S. will impose anti-dumping duties on this product. The ruling marks a significant step in the ongoing trade dispute between the two countries over the use of xanthan gum, a widely used food additive.
Out of the six commissioners, four found that Chinese xanthan gum has created substantial market pressure on U.S. producers, while two believed it had caused material damage. This decision follows an earlier determination by the U.S. Department of Commerce, which found that Chinese manufacturers were selling xanthan gum at unfairly low prices in the U.S. market. With the USITC’s final ruling, the Department of Commerce is now authorized to formally implement the anti-dumping duties.
According to the May ruling from the U.S. Department of Commerce, the dumping margins for Chinese xanthan gum range from 15.09% to 154.07%. These tariffs are expected to significantly impact Chinese exporters and may alter the competitive landscape in the U.S. market.
Xanthan gum is a natural polysaccharide commonly used as a thickener and emulsifier in various food products, including ice cream, dairy items, and jellies. In 2012, the value of xanthan gum imports from China reached approximately $82.4 million, highlighting its importance in the U.S. food industry.
On the same day, the USITC also unanimously ruled that xanthan gum imported from Austria did not cause any harm or injury to U.S. industries, and therefore no anti-dumping duties will be imposed on Austrian products. However, the U.S. Department of Commerce had previously determined that Austrian producers engaged in dumping practices with a margin of 29.98%, though this was not sufficient to trigger duty measures based on the USITC’s findings.
Under U.S. trade law, the Department of Commerce must first determine whether there is dumping or subsidization before imposing duties. The USITC then assesses whether the imported goods have caused material injury to domestic industries. This dual process ensures that trade actions are grounded in both economic and legal considerations.
The U.S. market for xanthan gum is dominated by just two domestic manufacturers, making the sector highly dependent on foreign imports. China, Austria, and France are the primary sources of xanthan gum in the U.S., with China being the largest supplier.
In response to the ruling, the Chinese Ministry of Commerce reiterated its stance against trade protectionism, urging the U.S. government to uphold free and fair trade principles. It emphasized the need for dialogue and cooperation to resolve trade disputes in a constructive and rational manner.
This development underscores the growing tensions in U.S.-China trade relations and highlights the broader implications of anti-dumping measures on global supply chains. As the U.S. continues to enforce its trade policies, businesses and policymakers alike will be closely watching how these regulations shape future trade dynamics.
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