In recent years, dumped and subsidized pea protein imports from China have made it impossible for domestic producers, including PURIS, to obtain a fair rate of return.
So, let’s dive into what that means for the pea protein market — and how we can move forward to protect the integrity of the foods we create for our consumers.
First, it’s important to take this issue back to the basics.
Anti-dumping laws in the United States are designed to protect domestic industries from unfair competition from foreign imports that are sold at less than fair value ("dumped"). Dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer's sales price in the country of origin ("home market"), or at a price that is lower than the cost of production.
Countervailing laws in the United States are designed to protect domestic industries from unfair competition from foreign imports that are subsidized by their governments. Subsidies can come in many forms, such as direct financial payments, tax breaks, or low-interest loans. When a foreign government subsidizes its exports, it can lower the price of the exports, making them more competitive with domestic products.
Chinese noodle producers repurpose discarded water from pea starch production, extracting valuable pea protein identical to that made domestically. They export this protein to the United States at dumped and subsidized prices.
PURIS filed Antidumping and Countervailing (AD/CVD) petitions requesting that the United States government investigate imports from China to protect its domestic supply chain and ensure a fair return on its investments. By taking this stand, we aim to address unfair trade practices and safeguard the integrity of the pea protein market.
In August, the U.S. International Trade Commission unanimously voted to continue the investigations based on a reasonable indication that dumped and subsidized imports of high protein content (HPC) pea protein from China were causing material injury to the United States pea protein industry. Commerce is now conducting its investigations and is expected to make its preliminary determination in the countervailing duty (anti-subsidy) case in December, and it will likely make its preliminary determination in the antidumping case in February.
Our mission to establish a sustainable and equitable food system depends on a fair-trade environment. Investigating and rectifying these unfair trade practices will safeguard the efforts of organizations like ours, preserving market integrity for future generations.
Should our petition pass, exporters and producers will be required to stop dumping to eliminate the existing unfair pricing or subsidies. This suspension is only possible via an investigation phase in an AD or CVD proceeding in which PURIS is presently engaged.
PURIS's commitment to fair trade extends beyond our organization; it encompasses the broader industry and the economic stability of our nation.
A market operating on a level playing field benefits everyone involved — our network of hundreds of farmers, manufacturers, suppliers, investors, and consumers. By addressing this situation, we strive to uphold the integrity of our domestic supply chain, support local businesses, and foster an environment where healthy competition thrives.
We understand that this petition is likely raising concerns about the future of certain pea protein supply chains for food manufacturers. We’re here to answer your questions and help you find a suitable protein that will work for your business while elevating your end product.