August M
A trade dispute that threatened to sharply raise the cost of Italian pasta in the United States is now set to be scaled back. US officials say revised tariff levels reflect further review and cooperation from producers, easing concerns among exporters and Italian authorities.
The decision follows months of investigation into pricing practices in one of the most symbolic food sectors of transatlantic trade.
Tariffs scaled down
According to CNN, the US Commerce Department plans to significantly lower tariffs that were due to take effect later this year on pasta imported from Italy. The revised duties are expected to range between 24% and 29%.
Earlier proposals had put the pasta-specific tariffs at 92%, which would have raised the total levy on Italian pasta to 107%, on top of existing EU-wide tariffs of at least 15%.
The Commerce Department said the final rates will be announced on March 12, following a review process that remains ongoing.
Review behind decision
A Commerce Department official told CNN that the lower proposed rates came after an “evaluation of additional comments received following a preliminary determination”.
“Italian pasta makers have addressed many of Commerce’s concerns raised in the preliminary determination, and reflects Commerce’s commitment to a fair, transparent process,” the official said.
The tariffs stem from an antidumping investigation into whether Italian producers sold pasta in the US at unfairly low prices.
Complaint and findings
The case began after two US companies, 8th Avenue Food & Provisions and Winland Foods, filed a complaint last July alleging that several Italian producers undercut US prices.
A preliminary Commerce Department report published in September found that two companies, La Molisana and Pastificio Lucio Garofalo, sold pasta to the US “at less than normal value”. The report said both firms were “uncooperative” during the investigation and provided “incomplete and unreliable” data.
Those two producers accounted for the largest share of Italian pasta exports to the United States, according to the department. Neither company immediately responded to CNN’s request for comment.
Italian response
Italy’s foreign ministry welcomed the revised tariff outlook. In a statement on Thursday, it said the adjustment signalled recognition by US authorities of Italian companies’ efforts to engage with the investigation.
The case highlights ongoing trade tensions between the US and European Union, even as both sides seek to avoid escalating disputes over key consumer goods.
Sources: CNN
