The U.S. International Trade Commission on Thursday determined that domestic industry is harmed by imports of xanthan gum from China that the Commerce Department has determined are sold in the United States at less than fair value.
The ITC, however, determined that similar imports from Austria posed no harm to U.S. industry. All six ITC commissioners voted in the negative with respect to imports of this product from Austria.
As a result of the ITC's affirmative determination, Commerce will issue antidumping duty orders on imports of Chinese xanthan gum. Also, as a result of the ITC's negative determination, no antidumping duties will be imposed on imports of this product from Austria.
Xanthan gum is a fermentation product used to thicken and provide stability to water-based solutions. It is used primarily in five sectors: food and beverage products, pharmaceuticals, consumer goods, industrial uses, and oilfield applications. The U.S. dumping investigation covers all grades of xanthan gum and mixtures containing 15 percent or more xanthan gum by dry weight.
The petitioner for the dumping investigation was CP Kelco U.S. of Atlanta. There are a total of two U.S. producers of xanthan gum with plants in Illinois, California, and Oklahoma.