The Ministry of Commerce in China announced the final ruling on an investigation into sugar imports, deciding to begin three-year duty on out-of-quota shipments to protect the domestic industry.
But experts said the ruling may not go far enough to stem the flow of lower-priced sweetener into the world’s top importer.
China now allows 1.95 million tons of imports at a tariff of 15 percent as part of its commitment to the World Trade Organization.
Imports beyond this attract a 50 percent levy.
The ruling will add an extra 45 percent duty to these imports from now to May 21, 2018, the ministry said in a statement. The duty will be reduced to 40 percent, then 35 percent in each subsequent year, according to the statement.
The investigation, launched last year in response to pleas by the domestic industry, found that increasing imports were causing serious harm to local producers.
WTO members may take measures to protect their domestic industries from any increase in imports which causes, or threatens to cause, serious problems for local producers.
The move could dent imports from top growers such as Brazil and Thailand as it will close the big gap between Chinese and international prices. Chinese sugar prices are around double those on the London market.
But traders said the higher tariffs will also likely spur increased smuggling across China’s porous southern border, while some imports from major producers may be shipped through third-party nations excluded from the tariffs.
Source: www.shanghaidaily.com