Grassley said that U.S. processors have lost major accounts and significant revenue due to a dramatic increase in imports of citric acid and sodium citrate from China. Domestic producers of these products recently filed an anti-dumping case with the U.S. Department of Commerce and the International Trade Commission.
"This 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. trade commission should act quickly to resolve this dispute because of its effect on our rural economy."
Corn milling plants in Cedar Rapids, Clinton and Eddyville produce citric acid and sodium nitrate. Together, the plants employ approximately 1,300 Iowans. Nationwide, production of value-added citric acid and sodium citrate consumes 16 million bushels of corn each year.
Citric acid imports from China nearly doubled from 1996 to 1998, and they are projected to have doubled again in 1999. As a result, the Chinese share of the citric acid market in the U.S. grew to 15 percent last year. Furthermore, sodium citrate imports to the U.S. surged 240 percent last year alone.
Citric acid provides a pleasant flavor to food, beverages and medicine. It's also used in textile printing and as a polishing agent for metals. Sodium citrate is used as an acidity regulator in food and drinks.
Grassley is chairman of the Senate International Trade Subcommittee.