Trade tensions escalated last week as China demanded the U.S. provide certificates guaranteeing that U.S. cargoes of dried distillers’ grains (DDGs) do not contain the Syngenta corn strain MIR 162. MIR162 has been approved by all importing nations including the EU for years however Beijing has been stalling its approval. The U.S. Grains Council has declared the demand for certification impossible to meet since it does not exist and has equated the request with an embargo. The U.S. National Grain & Feed Association estimated that $2.9 billion was lost by the U.S. corn industry in the 2013/14 season due to China’s MIR162 trade curbs and halting the importation of U.S. DDGs by China is a significant further threat. In 2012 China overtook Mexico to become the number one market for U.S. DDGs, taking 46% of all U.S. shipments.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service