Italy Escapes 107% Pasta Tariffs as Decision Reversed
The United States Commerce Department has announced a significant reduction in the tariffs initially proposed on Italian pasta imports. The previous tariffs, introduced in October at a staggering 107%, will now see a considerable drop. The new rates are expected to be between 24% and 29%.
Details of the Tariff Reduction
The tariffs primarily affect 13 Italian pasta makers due to an antidumping dispute. This complaint was filed by two American companies, 8th Avenue Food & Provisions and Winland Foods, in July of the previous year. They alleged that several Italian firms were selling pasta in the U.S. at unfairly low prices.
Investigation Findings
- The Commerce Department initiated its investigation in September.
- It determined that two companies, La Molisana and Pastificio Lucio Garofalo, sold pasta at prices below normal value.
- These companies were also noted for being uncooperative and providing unreliable data during the investigation.
The pasta makers under scrutiny accounted for a significant portion of pasta sold to the U.S. market. The final tariff rates are set to be announced on March 12, following additional evaluations made by the Commerce Department.
Italian Government Response
The Italian Ministry of Foreign Affairs has welcomed the decision. They believe this redetermination reflects recognition of the companies’ willingness to cooperate. The Ministry highlighted that engaging transparently with U.S. authorities is vital for a fair trade process.
This decision is seen as a positive move for Italian pasta producers, who faced harsh tariff proposals that could have severely impacted their export business. With these revised rates, Italian pasta may become more competitive in the U.S. market.
