The U.S. International Trade Commission (ITC) and the U.S. Department of Commerce’s (DOC) International Trade Administration each filed Federal Register notices Dec. 1, 2010, pertaining to the five-year Sunset Review of solid urea imports from Russia and Ukraine.
The last Sunset Review in 2005 was contentious, pitting producer-interveners Agrium Inc., CF Industries Holdings Inc., and Potash Corp. of Saskatchewan Inc. against the Agricultural Retailers Association (ARA) and other buying groups (GM Dec. 3, 2007) that sought an end to the dumping duties. The battle did not end until December 2007 after much litigation, with the ITC finally upholding the existing antidumping orders against Russia and Ukraine.
Indications are that another battle may be brewing again this year. CF Industries Holdings Inc. Chairman and CEO Stephen Wilson mentioned antidumping duty orders Dec. 1 when he spoke before the ARA in Palm Springs, saying they have been “a point of disagreement” between CF and ARA. Wilson said at times the very existence of U.S. producers has been threatened by imports from Russia and the Ukraine. “We welcome fair competition from any source,” he said, but stressed that CF would not allow its business, customers, and shareholders “to be hurt by unfair trade practices.”
The stances of Agrium, PotashCorp, and ARA were not immediately available at press time. According to the DOC filing, interested domestic parties wishing to participate in the Sunset Review must respond no later than 15 days after the date of the publication in the Federal Register. All parties must file complete substantive responses not later than 30 days after the publication date (see http://edocket.access.gpo.gov/2010/pdf/2010-30237.pdf). The ITC filing and guidelines are at http://edocket.access.gpo.gov/2010/pdf/2010-29948.pdf.
Sources note that conditions have changed quite a bit since 2005. The U.S. industry has continued to consolidate and is currently profitable, enjoying lower natural gas prices and good demand. By contrast, Ukraine now suffers from higher natural gas prices and has become a swing producer.
DOC issued antidumping duty orders on imports of solid urea from the Union of Soviet Socialist Republics (USSR) on July 14, 1987. After the USSR divided in December 1991, DOC split the orders into 15 orders applicable to each independent state. In 1999, the orders were continued only as to Russia and Ukraine, and those have continued except for an exemption of MCC Eurochem, which in 2008 successfully achieved “new-shipper” status, and thereby avoided the 64.93 percent tariff placed on other Russian and Ukrainian producers (GM May 26, 2008).