Thursday, March 1, 2012

Fed: Customs recommends against Round-up protection

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Fed: Customs recommends against Round-up protection

By Shane Wright

CANBERRA, Dec 10 AAP - The Australian Customs Service (ACS) has recommended againstslapping high tariffs on Chinese imports of a chemical vital to the nation's grain farmers.

A statement of essential facts compiled by the ACS has found nothing to back a claimby US multinational Monsanto that its sales into Australia were being hit by Chinese glyphosate.

Customs launched an investigation into Chinese glyphosate earlier this year after Monsantoclaimed it was coming into Australia at a price lower than the cost of production.

Monsanto sought to have Chinese glyphosate slugged with a 168 per cent tariff.

Australian farmers are the world's biggest users of glyphosate, better known by itsMonsanto trademark name of Round-up.

The average wheat farmer will use between 5,000 litres and 10,000 litres of the chemicalto control weeds every season.

The ACS found that a small shipment of glyphosate was probably dumped on the Australianmarket earlier this year, but it had no impact on Monsanto.

Grains Council of Australia acting president Ron Hards said the ACS findings, whichwill now go to Customs Minister Chris Ellison, were good news for farmers.

"This is a great result for Australian farmers and domestic users of glyphosate alike,"

he said in a statement.

"In a globally competitive marketplace, it is imperative that Australian farmers retainaccess to essential inputs, such as glyphosate, at world parity prices.

"Glyphosate is a widely used herbicide that has become an essential component of bestpractice in Australian grain production systems."

Monsanto's Round-up has about 50 per cent of the Australian market.

A 20 litre drum of the chemical has dropped from around $400 to a little over $100,making it cheaper than in Monsanto's home market of the United States.

"Customs found very little evidence to support Monsanto's claims that Chinese glyphosatehas been dumped in Australia," Mr Hards said.

"In fact, Customs has determined that any injury suffered by Monsanto during the investigationperiod was not caused by dumping."

Customs has left open its investigation after receiving more information from Monsanto.

AAP sw/daw/pw/sb

KEYWORD: MONSANTO

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