International Ag News, Thursday March 31, 2016

WTO Sides with Argentina in Biodiesel Anti-Dumping Case

The World Trade Organization this week sided with Argentina in a biodiesel anti-dumping duties trade dispute. The dispute between Argentina and the European Union started in 2013 and the WTO called on the EU to change its policy, however noted the EU regulation did not violate WTO rules, according to Reuters. The EU was blocking Argentina biodiesel imports. Argentina is a major exporter of biodiesel and called EU measures “protectionist” while the EU argued Argentina was "dumping" or selling biodiesel at below the cost of production and harming local producers. Argentina's Foreign Ministry issued a statement welcoming the ruling, saying being blocked by the EU had cost the country near $1.6 billion in lost sales. Both countries have 60 days to file an appeal.

China Policy Change Threatens Global Feed Trade

Grain traders told Reuters that China’s policy change to end corn stockpiling brings the risk of lesser demand from China. The Chinese government confirmed this week the nation will end its corn stockpiling program at a time of high global supplies. Importers in China are likely to reduce purchases of farm products for livestock feed, including sorghum and dried distillers grains, or DDG’s. The policy shift aims to bring China’s domestic corn prices more in line with foreign supplies. China has become a significant importer of corn from the U.S. and other countries in recent years as the county has accumulated an estimated 250 million metric tons of corn in reserves, more than the country can consume in a single year. Some economists predict it will take China years to eat through its massive stockpiles. However, the country may need to keep importing feed grains if the quality of the reserves is poor or domestic prices remain too high, according to the U.S. Grains Council.

NAFB News