Glyphosate In The EU
16 December 2008 In spite of AUDACE’s opposition since April 2002 to the antidumping duty on imports of glyphosate originating in the People’s Republic of China, Taiwan, and Malaysia, a community regulation No. 1683/2004 of Sept. 24, 2004 extended a definitive anti-dumping duty of 29.9% for five more years from Oct. 1, 20041.
The European directive 91 414/EEC had given the notifiers Monsanto, Cheminova, and Syngenta five years of protection, which ended on the July 1, 2007, on data generated for the purpose of including glyphosate into the community’s positive list of active substances.
A steady and sustained increase in the price of glyphosate-based products began very precisely on that expiry date to reach 350% today.
The situation is such that it will now cost European farmers an extra 1 billion Euros to satisfy their needs for glyphosate.
AUDACE described in detail this situation as early as April 2002 in a complaint lodged before the European Commission (EC) against the antidumping measure.
That is how, on the pretext of a shortage caused by a massive use of its genetically modified (GM) glyphosate-resistant crops, Monsanto managed to increase its prices in the European and the world markets as it had achieved in 2004 in Argentina, and therefore would have us believe that it did not take into account its own predictions made in 2000 which foresaw very precisely in a term of six or seven years its GM crops covering 80 million hectares (Ha).
This strategy was predictable. However, the Community authorities competent for trade issues did not think it wise to take it into account, even to deny2 the economic consequences that would result to community farmers.
That is why AUDACE lodged before the EC a request for the immediate suspension of the antidumping measures introduced by Council Regulation 1683/2004 pursuant to article 14-4 of the basic regulation 384/96 which provides for the suspension for nine months where market conditions have changed. After an EU Council’s decision, the suspension period can be extended for another 12 months.
Considering the evidence produced in support of this request, it is most likely that AUDACE will obtain satisfaction before the end of September 2008.
Admittedly, the revocation of the antidumping duty will not have for European farmers as radical an effect as its implementation had in consolidating Monsanto’s monopoly position.
However, it will at least allow for a hint of competition even if this will be greatly dampened by Chinese producers’ interest to sell their technical material following in the inflationary impulse given by Monsanto.
For AUDACE, it is high time this issue caught the attention of the market internationally, since 80 million Ha of GM crops resistant to glyphosate only represent a mere 5% of the global cultivable land surface.
Notes
1 For a history of the measure applied to glyphosate, see Erigone : www.erigone.com/Antidumping/antidumping-glyphosate.htm
2 See point 5 (116) “Conclusion on Community interest” of COUNCIL REGULATION (EC) No 1683/2004 of Sept. 24 2004; Official Journal of the European Union L 303/1. AUDACE represents Europe’s plant health and veterinary medicine to stop distorting trade measures.
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