Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), a leading glyphosate producer in China, announced on 24 July, 2012 that it has finally won the glyphosate anti-dumping case accused by the Council of the European Union (the CEU) since 2000. Thus Zhejiang Wynca becomes the first domestic company to challenge the unfair trade remedy investigation initiated by the CEU and gained two trials' victory, according to CCM International’s latest issue of Crop Protection China News.
The winning of the glyphosate anti-dumping case has greatly cheered up domestic glyphosate production enterprises, especially Zhejiang Wynca. The company now believes that it is worth laying 12 years' effort to cope with the anti-dumping case because the winning has made a good demonstration effect to all of domestic glyphosate producers who may face anti-dumping investigation in the future and it has also helped domestic glyphosate producers set up confidence in exploring market in the EU.
Even so, Zhejiang Wynca has still paid great price on the anti-dumping case because of the long-run lawsuit which has made it almost lose the glyphosate market shares in the EU in the past few years. According to the financial report of Zhejiang Wynca in 2011, although its revenue in overseas market in this period reached USD286.38 million, accounting for nearly 40% of its total revenue, its revenue of glyphosate exported to the EU accounted for a very tiny part of the revenue in overseas market. Now, as the company has won the anti-dumping case, it believed that its market expansion of glyphosate in the EU will be much smoother.
However, the market exploring in the EU may not be as easy as what Zhejiang Wynca believes. It is heard that the CEU is not resigned to give up but still preparing launching trade remedy investigations by itself.
In the past decade, domestic glyphosate has been facing anti-dumping investigations in overseas markets. Owing to the lower cost of the production of domestic glyphosate, the more competitive price of domestic glyphosate compared to those products in some other countries has threatened the local producers. In addition to the EU, Brazil and Australia have ever levied anti-dumping duties on Chinese glyphosate. In a bid to protect domestic glyphosate industry, most countries would set up trade barrier with the name of anti-dumping to charge extra duties on the glyphosate originated from China. It is becoming a usual measure for these countries used to protect local glyphosate industry. Eyeing the intensive competition in overseas markets, this kind of protection measure will be used much more frequently in the future.
Events review
In Feb. 2000, the European Union (the EU) started to levy 48% anti-dumping duty over glyphosate originating from China.
In Feb. 2003, the EU initiated merger investigation towards Chinese glyphosate. Zhejiang Wynca, as the representative of domestic glyphosate industry, responded to the prosecution exclusively.
In Sept. 2004, the EU decided to levy 29.9% of anti-dumping duty over Chinese glyphosate.
In Dec. 2004, Zhejiang Wynca claimed that it appealed against the decision of the EU and decided to prosecute to the decision to the European Court of First Instance.
In May 2009, the EU claimed to suspend levying anti-dumping duty over Chinese glyphosate for a period of nine months.
On 17 June, 2009, the European Court of First Instance made a judgment to cancel levying final anti-dumping duties over the glyphosate from Zhejiang Wynca.
In Aug. 2009, the CEU sued the verdict of the European Court of First Instance to the European High Court of Justice.
On 19 July, 2012, European High Court of Justice made the final judgment that Zhejiang Wynca finally won the lawsuit.
Source: Crop Protection China News 1214
http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html
Content of Crop Protection China News 1214:
Chlorantraniliprole: still common as recessive composition in China
Zhejiang Wynca finally wins the long-run glyphosate anti-dumping case
Glyphosate: short supply and continuously rising price
Import of pesticides keeps increasing in H1 2012
China's export volume of pesticides to ASEAN increases
Jiangsu Changqing initiates pesticide expansion
New investor helps Anhui Huaxing to relive
Lianhe Technology enjoys good performance in H1 2012
Lier Chemical's performance exceeds forecast in H1 2012
Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.
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