The United States International Trade Commission (USITC) and the Department of Commerce are in the final stages of antidumping (AD) and countervailing duty (CVD) investigations on imports of high protein content (HPC) pea protein from China. The investigations aim to determine whether Chinese pea protein is being sold in the US at less than fair value and if Chinese producers are receiving unfair government subsidies. The final hearing for these investigations is currently scheduled for June 25th, in which the US Dept. of Commerce will issue the final determination on antidumping and countervailing duties and provide issuance of orders.
The preliminary countervailing rates were published in December, followed by the antidumping rates in February. They are expected to go into place this year. The proposed rates are as follows:
Producer/Exporter | Countervailing Duties | Antidumping Duties | Combined |
---|---|---|---|
Producer/Exporter | 16.46% | 269.77% | 286.23% |
Yantai Shuangta Food/Junbang | 15.09% | 269.77% | 284.86% |
CVD cooperating respondents/ AD separate rate | 15.78% | 111.65% | 127.43% |
CVD non-cooperating AFA rates/ AD China-wide | 342.53% | 269.77% | 612.30% |
The severity of these rates, which are being imposed now and, in many cases, retroactively, puts replacement cost for Chinese pea protein substantially above North American material. With this news being publicly available, the demand for western pea protein has seen a steady rise over the past few months and will continue to do so as the supply thins. Prices have only increased slightly but are anticipated to continue to rise throughout the year. Norben is offering our expertise to help mitigate these complex factors affecting the US pea protein market. Contact our team today!
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