Novus International files complaints with US government amid increased methionine imports, low pricing from Spain, France and Japan
Feed additive supplier Novus International Inc. filed anti-dumping petitions with the U.S. Department of Commerce and International Trade Commission on Wednesday, July 29.
The petitions requests the agencies investigate imports of methionine from Spain, France and Japan consistent with the World Trade Organization (WTO) Anti-dumping Agreement. Imports of methionine from the three countries are priced substantially lower than domestic producers’ shipments.
The volume of methionine imports into the United States from the three countries increased by more than 200% from 2017 to 2019, and another 29% between the first quarter of 2019 and first quarter of 2020.
“We believe fair and competitive business practices are integral to the health of our industry and are necessary to protect our customers and consumers everywhere,” said Dan Meagher, president and CEO, Novus International Inc. “Today we took steps to ensure those fair practices.”
Illegal dumping of methionine in the United States at an artificially low price can hurt the U.S. agriculture industry.
Threat to domestic methionine production
Access to domestically produced methionine is critical for U.S. animal protein producers. Illegal dumping can result in the reduction or elimination of domestic production. The animal protein industry benefits from having domestic and foreign supply options available.
“The coronavirus pandemic has reminded us of the vulnerability of global supply chains and the impact on highly integrated industries, such as agriculture and food production, when disruptions occur,” said Meagher. “We are simply asking the U.S. government to ensure Spain, France and Japan are abiding by international trade laws.”
The government investigation will determine whether illegal dumping of imported methionine has occurred. The investigation is expected to take approximately 13 months. If the government determines importers illegally dumped foreign products, those importers may have to pay a duty on imports, which would be collected by the government as a tax.
The International Trade Commission is expected to make its preliminary determination by September 14, 2020. The U.S. Department of Commerce is expected to make its preliminary determinations and impose any remedial duties by January 5, 2021.
These timelines may adjust depending on the course of the investigations.