On June 30, Bayer asked U.S. trade authorities to levy duties on glyphosate imports from China, asserting that the product - the active ingredient in its Roundup herbicide - is being offered in the U.S. at artificially depressed prices. The petition was filed by Bayer's Monsanto subsidiary with the U.S. Department of Commerce and the U.S. International Trade Commission.
In a company statement, Bayer said, "Monsanto filed antidumping and countervailing duties petitions to address predatory trade practices and subsidized imports of glyphosate." The statement added, "The domestic glyphosate business as it stands today is not sustainable."
Bayer asked for countervailing duties on lower-priced shipments from China to compensate for the gap between those imports and glyphosate produced domestically, according to a copy of the petition. Bayer is the only U.S. producer of glyphosate.
The filing drew swift criticism from U.S. farm organizations, which said duties would increase the cost of the herbicide and compound financial strains that many growers have faced in recent years. Jed Bower, president of the National Corn Growers Association, said: "They are taking this step purely for the benefit of the company and its shareholders, once again at the expense of the American farmer and at a time when the ag economy is facing one of its most difficult periods in decades."
Industry groups highlighted that grain and soybean farmers have struggled financially for the past four years, citing high input costs for chemicals, seed and fertilizer. The American Soybean Association warned that "Actions to impose import taxes on those products limit market competition, threaten cost spikes, and ultimately hurt U.S. farmers."
The trade petition comes on the heels of a notable legal development for Bayer. On June 25, the U.S. Supreme Court overturned a jury verdict in Missouri that had awarded $1.25 million to John Durnell, who said he developed non-Hodgkin lymphoma after years of exposure to glyphosate in Roundup. Last week’s decision effectively blocked thousands of state-court lawsuits alleging that Bayer failed to warn users that glyphosate causes cancer.
Bayer has previously told U.S. lawmakers that it might halt sales of Roundup unless legal protections against product liability litigation are strengthened. The company has paid roughly $10 billion to settle disputed claims that Roundup causes cancer.
The trade action and recent court ruling together mark a pivotal period for Bayer's glyphosate business: the company is pursuing trade remedies to counter what it calls unfairly priced imports while also navigating liability exposure related to Roundup litigation.
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