Xanthan gum exporters threaten to quit US after tariff decision

Chinese exporters of xanthan gum say they plan to quit the United States market after the US Department of Commerce imposed anti-dumping duties of up to 154 percent on the food additive coming from China.

China's production of xanthan, an additive widely used in food processing, reached 74,000 tons in 2010, about 67 percent of the world's total production.

More than 70 percent of the products were exported, and the US, the Middle East and western Europe were the major markets. The value of Chinese exports of xanthan to US doubled from 2009 to 2011.

Sales agents said the tariff will heavily affect Chinese exports which were already suffering from sluggish world demand, according to China Business News, which quoted a sales manager surnamed Luo with Shanghai Zhitong Chemical Co Ltd, a major producer of the food additive, who suggested the company now planned to quit the US market as a result.

A finial ruling on the tariff is expected to made in mid-May, according to the US Department of Commerce.