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Ag Groups Urge Trump to Address China Trade Tariffs on Ethanol, DDGS

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The U.S. Grains Council, the Renewable Fuels Association, and Growth Energy are asking for help in addressing China’s recent implementation of protectionist trade barriers that are shutting out U.S. exports of ethanol and distillers dried grains. Specifically, the three groups are asking the incoming U.S. Trade Representative to put China’s recent actions near the top of the administration’s China trade agenda. Last September, China imposed a preliminary anti-dumping duty of 33.8 percent against U.S. DDGS and a countervailing duty of 10 to 10.7 percent. In a final ruling last month, China increased its DDGS anti-dumping duty to 42.2 to 53.7 percent and its DDGS countervailing duty to 11.2 to 12 percent.

Additionally, the tariffs on U.S. ethanol have increased from 5 percent to 30 to 40 percent. The letter written to President Donald Trump states: “It is widely believed that raising these tariffs will put an immediate end to ethanol exports to China.” The groups ask the tariff rates be included in any potential upcoming trade negotiations with China.

Source: NAFB News Service