US sets preliminary duties on food additive from China, Austria

The US Commerce Department on Friday said it had set preliminary duties ranging up to 154 per cent on imports of a food additive and thickening agent from China and Austria to offset what it said were unfairly low prices.

The ruling is a victory for CP Kelco, a family-owned Atlanta-based company which filed a petition last year asking for anti-dumping duties on Xanthan gum from the two countries.

Xanthan gum is used as a thickening agent in products like salad dressing and cosmetics.

The United States imported US$25 million of the good from Austria and US$64 million from China last year.

The Commerce Department set a preliminary duty of 17.18 per cent on imports from Austria and duties ranging from 21.69 to 154.07 per cent on imports from China.

The department will issue final duty determinations in May.