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China May Be Dumping Two Ag Products January 26, 2000 Sen. Charles Grassley (R-IA) wants a federal investigation into "possible illegal imports" of two agricultural products from China. U.S. processors have lost "major accounts and significant revenue" from a dramatic increase in imports of citric acid and sodium citrate from China, he says. "The situation quite possibly violates trade laws designed to prevent one country from driving down prices and eliminating competition in another by dumping products into the market at unprofitable margins," Grassley said. The U.S. International Trade Commission "should act quickly to resolve this dispute because of its effect on our rural economy." Citric acid imports form China nearly doubled from 1996 to 1998 with another doubling expected in 1999. The Chinese share of the U.S. citric acid market increased to 15% last year, said Grassley. Sodium citrate imports increased 240% last year alone. Production of citric acid and sodium citrate uses 16 million bushels of corn each year. Citric acid provides flavor to food, beverages and medicine and is used in textile printing and as a polishing agent for metals. Sodium citrate is used as an acidity regulator in food and beverages. |