U.S. to Probe China Monosodium Glutamate Dumping/Subsidy

U.S. officials are looking into whether China and Indonesia broke trade rules on a product linked to cuisine — monosodium glutamate (MSG).

U.S. Commerce Department said Thursday it will investigate whether Chinese and Indonesian companies either dumped MSG on the U.S. market at artificially low prices or benefited from improper government subsidies to the industry, or both. The Commerce Department moved to proceed with the investigation following a request from Ajinomoto North America Inc., the U.S. unit of Japan's Ajinomoto Co. that produces food products including MSG, chemicals and pharmaceuticals.

The U.S. recently has probed Chinese shrimp, silica, plywood and xanthan gum for possible dumping or improper subsidies.

The Commerce Department says China has doubled its U.S. shipments of MSG in recent years to 25,900 metric tons worth some USD36.9 million in 2012, from 12,500 metric tons in 2010. The figures include products containing at least 15% MSG, a naturally occurring amino acid said to impart a desirable "umami" flavor to food.

The investigation would lead the U.S. to slap duties on Chinese and Indonesian MSG, if the Commerce Department makes a final ruling of improper dumping or subsidies next year, and if the U.S. International Trade Commission finds U.S. industry injured as a result.