Sunday, 21 October, 2018

Anti-dumping | Trade probe of U.S. sorghum a 'normal' investigation

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Melinda Barton | 06 February, 2018, 22:31

As per records, last year, the USA had shipped 4.8 million tons of Sorghum estimated at Dollars 1 billion to China, while soybean imports were valued at almost USD 14 billion.

China has launched an anti-dumping investigation into sorghum imports from the U.S., spurring worries of a brewing tit-for-tat trade war between the world's top two economies.

China has a started a subsidy investigation into grain sorghum imported from the United States, according to a statement released by the Chinese government on February 4.

"I personally believe this is China's response to Trump's action on washing machines", said Li Qiang, chief analyst at agriculture consultancy Shanghai JC Intelligence.

The Ministry of Commerce said it launched the probe of US sorghum after concluding large volumes and falling prices hurt Chinese producers. Trump has also been considering new tariffs on imported steel and aluminum.

Like the USA aluminium investigation, China's commerce ministry investigation into sorghum was self-initiated.

The investigation into sorghum dumping will be carried out for the period from November 1, 2016 until October 31, 2017, while an investigation of industrial injury will be from January 1, 2013 until October 31, 2017, said the commerce ministry statement. Reports have confirmed that it was the first such anti-subsidy & anti-dumping probe by the U.S against any country since the last many years.

In response to the USA tariffs, China's hawkish Global Times urged Beijing to target United States products in retaliation, specifically citing the agriculture industry.

Both probes are slated to be completed by January 4, 2019.