US Grains Council initiates response to China's unfair trade allegations

The USGC has been working with the Chinese since 1981.
The USGC has been working with the Chinese since 1981. | File photo
In response to the start of an investigation this month, the U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA) began an industry-wide registration for companies that produce or sell distiller’s dried grains with solubles (DDGS) to China.

The Chinese ethanol industry alleges it has suffered because of U.S DDGS made imports at unfairly low prices. The countervailing duty case claims that the U.S. and state agricultural and ethanol policies unfairly subsidize production of DDGS exports to China. Investigations against the United States by the Chinese Ministry of Commerce (MOFCOM) started in January. 

“We believe the allegations by the Chinese petitioners are unwarranted and unhelpful,” USGC President and CEO Tom Sleight said. “They could have negative effects on U.S. ethanol and DDGS producers, as well as on Chinese consumers, potentially over a period of many years."

Companies that wish to maintain access to the Chinese market while the investigations take place must register within 20 days of the initiation of the investigation to indicate their cooperation.

“We and our members will work vigorously in the coming months to demonstrate that the allegations being investigated by MOFCOM are false, even while we continue to stand ready to expand our cooperation with China on agricultural issues of mutual benefit,” Sleight said.

The USGC has been working with the Chinese since 1981 as China imports more than half the exportable supply of DDGS. That amounted to $1.5 billion in 11 months last year.

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U.S. Grains Council 20 F St NW Washington, DC - 20001

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