ADM files anti-dumping complaint against wheat gluten imports from Europe and Australia

25 August 2020

wheat gluten

An anti-dumping complaint against imports of wheat gluten from Austria, Belgium, France, Germany, Lithuania and Australia has been filed by ADM Agri-Industries Co., a wholly owned subsidiary of supplier ADM. The complaint argues for the case that European and Australian wheat gluten exporters are dumping in the Canadian market at prices which are “both substantially below the cost to produce wheat gluten and substantially below what these exporters charge in their domestic markets.”

“Unfair dumping adversely impacts Canadian industry, threatening new investment and Canadian jobs. The complaint seeks a level playing field to compete on fair and equal terms imports in the Canadian market,” states ADM.

ADM Agri-Industries owns and operates a wheat gluten facility located in Québec, Canada. A formal anti-dumping investigation was initiated by the Canada Border Services Agency (CBSA) on August 14, 2020. The complaint is also backed by Permolex, a Canadian supplier of bakery flour, gluten and livestock feed.

In addition to facing an increase in the volume of the allegedly dumped imports, the complaint underlines a “suppression of market share, lost sales, price undercutting, price depression, price suppression, accumulation of inventories, threats to investment plans, negative impacts on the ability to raise capital, impacted financial results and declines in employment wages and a reduction in hours worked.”

The CBSA and the Canadian International Trade Tribunal (CITT) both play a role in the investigation. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by October 13. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair prices and will make a preliminary decision by November 12.

Currently, there are 119 special import measures in force, covering a wide variety of industrial and consumer products, from refined sugar to steel.

“If the CITT determinations are affirmative, the CBSA will impose preliminary antidumping duties on imports from the subject countries as of the date of the preliminary dumping determination,” ADM affirms.

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