By Jessica Domel
Multimedia Reporter

Despite requests from six major commodity groups to deny the petition, the U.S. International Trade Commission (ITC) voted on Friday to allow an investigation into potential tariffs on 2,4-D from China and India to continue.

“The United States International Trade Commission today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of 2,4-dicholorophenoxyacetic 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,” the USITC ruled.

The initial petition to consider antidumping and countervailing duties on 2,4-D from China and India was filed by Corteva Agriscience.

Corteva is currently the only producer of 2,4-D in the United States.

The decision drew the attention of farm groups across the nation.

“With only one domestic supplier of 2,4-D in the country, being Corteva, it could definitely raise the prices of all the 2,4-D in the country through increased tariffs, leading to a higher cost to farmers and ranchers,” Brant Wilbourn, associate director of Commodity and Regulatory Activities for Texas Farm Bureau, said.

Prior to the vote Friday, six national commodity groups sent a letter to the ITC asking them to nix the petition for duties on the herbicide.

“If the U.S. International Trade Commission votes to continue this case beyond the preliminary stage, farmers across the country could soon find it difficult to access critical supplies for these products,” the organizations wrote.

The group, which includes the American Soybean Association, National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Sorghum Producers and U.S. Durum Growers Association, said herbicides are one of the most significant inputs during the growing season, and that 2,4-D-based herbicide products are important options for farmers of many different crops.

“The imports covered by this case are the large majority of sources of supply other than Corteva, which is the only U.S. supplier,” the letter said. “To put it simply, 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 groups say 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 rise.

“There is no way for farmers to make up for the additional costs, as we are price takers, not makers, in selling crops,” the groups said. “If this case moves forward, we will be forced to make budget cuts that can impact our operations as well as our local economies. To put it simply, the weight of a dispute between multinational companies would fall directly on the shoulders of growers.”

As a result of the ITC’s decision the U.S. Department of Commerce will continue its investigation into 2,4-D imports.

“They’re going to continue their investigation on the imports of 2,4-D and determine what the damage is and if there needs to be an implementation of antidumping and countervailing duties put on that product,” Wilbourn said.

Preliminary countervailing duty determinations are due on or about June 27.

Preliminary antidumping duty determinations are due on or about Sept. 10.