WASHINGTON, D.C. – The U.S. International Trade Commission (USITC) has decided to advance a petition by Corteva Agribusiness to place anti-dumping and countervailing duties (tariffs) on 2,4-D herbicide imports from China and India.

The only U.S. manufacturer of 2,4-D, Corteva has alleged highly subsidized imports are being dumped into the U.S. at less-than-fair market value, while cutting into the company’s U.S. market share for the herbicide, since 2021. On May 17, the commission voted to continue investigations on 2,4-D from China and India.

The commission said it “determined there is a reasonable indication a U.S. industry is materially injured by reason of imports of 2,4-Dichlorophenoxyacetic acid (2,4-D) from China and India that are allegedly sold in the United States at less-than-fair value, and subsidized by the governments of China and India.”

According to the Congressional Research Service, “Anti-dumping and countervailing duties address unfair trade practices by providing relief to U.S. industries and workers that are ‘materially injured,’ or threatened with injury, due to imports of like products sold in the U.S. market at less-than-fair value (anti-dumping duties), or subsidized by a foreign government or public entity (countervailing duties).”

In an April 18 letter to USITC Commissioner David Johanson, six of the nation’s major commodity groups, including the National Corn Growers Association (NCGA), encouraged the commission to vote against advancing a petition.

“Herbicides are one of the most significant inputs during the growing season, and 2,4-D-based herbicide products are important options for farmers of many different crops,” the letter read.

“The imports covered by this case are the major sources of supply other than Corteva, and America’s farmers cannot rely upon a sole domestic supplier of 2,4-D to meet nearly all the market’s needs, and imports are needed to meet the majority of market needs,” the letter said.

Moreover, the NCGA said duties on 2,4-D imports from China and India would intensify what is already a difficult period for many growers as key input costs continue to increase.

Harold Wolle, NCGA president and a Madelia, Minn., farmer, said the decision will impact farmers.

“We are disappointed that the U.S. International Trade Commission did not listen to the feedback from farmers about how harmful these tariffs could be to rural America,” he said at a recent public hearing on the petition. “Corn prices are already low and input costs have been rising. This decision will only compound our problems.”

In 2023, imports from China and India accounted for 63 percent of all 2,4-D imports, representing $50.9 million out of a total $80.5 million in imports, Dave Salmonsen, American Farm Bureau Federation senior director of government affairs, told Farm World.

“According to the U.S. International Trade Commission, the only other major import source is Mexico,” he said. “Adding tariffs to the two leading import sources for a critical pesticide will increase the costs to farmers.”

The USDA is projecting record-high farm production cash expenses for 2024. At the same time, crop values are declining. The USDA also projected total cash receipts for crops in 2024 will be 11.7 percent lower than 2022.

Based on the trade for 2022 and 2023, China and India represent nearly half of all imports for the 2,4-D herbicide group, Chad Hart, Iowa State University professor of agricultural economics, told Farm World.

“So, the tariffs could have a significant impact on product availability in the U.S., depending on the ability of other herbicide exporters – mainly from South America and Europe – to fill in,” he said.

“If those other exporters can fill in the gap, then the economic impact would be small,” he added. “The concern corn growers have is that the rest of the world cannot quickly fill in the gap and thus, herbicide prices would rise, tightening already-stressed crop margins.”

According to the commission notice, the preliminary countervailing duty determinations will be issued on or about June 27. The preliminary anti-dumping duty determinations will be issued on or about Sept. 10.