Duties Coming on 2,4-D        04/29 13:02

   US Trade Body Determines 2,4-D Imports From China, India Harmful to Corteva

   The U.S. International Trade Commission made a final determination on 
Tuesday that imports of the herbicide 2,4-D from China and India have harmed 
Corteva Agriscience.

Todd Neeley
DTN Environmental Editor

   LINCOLN, Neb. (DTN) -- Corteva Agriscience was harmed by imports of the 
herbicide 2,4-D and duties will be placed on imports of the chemical from China 
and India at rates yet to be determined, the U.S. International Trade 
Commission ruled in its final phase of antidumping and countervailing duty 
investigations.

   The decision comes despite concerns raised by the National Corn Growers 
Association and the American Soybean Association who have said farmers rely on 
those generic imports and that additional duties would make those products more 
expensive at a time when farmers are fighting higher input costs.

   "We are concerned and alarmed by this ruling," said Kenneth Hartman Jr., an 
Illinois farmer and National Corn Growers Association president.

   "Corn growers should not be forced to rely exclusively on one domestic 
supplier. Today's decision threatens to cause availability shortages for 2,4-D 
that will hamper the work of our farmers, who are facing a tough environment 
due to a prolonged period of high input costs and low prices."

   The herbicide 2,4-D is a growth regulator that targets broadleaf weeds. 
Those weeds have been problematic for corn growers to manage. The herbicide has 
minimal impact on grasses, making it useful for corn growers.

   Caleb Ragland, president of the American Soybean Association and a soybean 
farmer from Kentucky, said in a statement the decision comes at a difficult 
time for producers.

   "The announcement of these final duties on imports is disappointing to 
soybean growers across the country who depend on imports of generic 2,4-D in 
combination with other herbicides for burn-down purposes to kill weeds before 
planting, particularly in no-till and minimum-till operations," Ragland said.

   "For soybean farmers, times are already tough. Production costs are nearing 
record highs. The prices of soybeans have decreased more than 40% in the past 
three years. Our herbicide options are becoming increasingly limited."

   Ragland said 2,4-D imports do "not compete at all" with Corteva's 2,4-D 
choline product that is required to be used with Corteva's Enlist soybeans.

   "New duties on 2,4-D would make things even harder, further disrupting our 
access to reliable herbicide tools in our toolbox," Ragland said previously in 
testimony before the ITC.

   Corteva claimed in its petition filed on March 14, 2024, that those imports 
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.

   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.

   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. Corteva said in the petition that 
because of the dumping, U.S. producers "continually lost sales and revenues" 
and that led to Corteva's lost market share and declining sales.

   Read more on DTN:

   "US Trade Body Investigates 2,4-D Claim," 
https://www.dtnpf.com/agriculture/web/ag/crops/article/2024/05/17/international-
trade-commission-2-4-d

   "NCGA Warns 2,4-D Duty Hurts Farmers," 
https://www.dtnpf.com/agriculture/web/ag/crops/article/2024/04/04/ncga-asks-trad
e-commission-reject-2

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

   Follow him on social platform X @DTNeeley




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