The United States abandons its proposed tariffs which threaten to deal a major blow to Italy. pasta industryreducing customs duties on several major producers.
After an investigation into allegations that Italian pasta was being sold in the United States at unfairly low prices, authorities found that exporters had addressed numerous concerns, leading to a reduction in proposed tariffs on food products. 13 companiesa US Department of Commerce official told Reuters.
“[Our] “Post-preliminary analysis indicates that Italian pasta makers have addressed many of the concerns raised by Commerce in the preliminary determination,” the official said. “Commerce will continue to engage with interested parties to consider all information before making the final determination.”
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Packages of pasta imported from Italy at a Houston supermarket. (Ronaldo Schemidt/AFP via Getty Images / Getty Images)
Pasta maker La Molisana’s proposed price was reduced to 2.26%, while that of fellow producer Garofalo was lowered to 13.98%, according to Reuters.
The remaining 11 pasta makers — Agritalia, Aldino, Antiche Tradizioni di Gragnano, Barilla, Gruppo Milo, Pastificio Artigiano Cav. Giuseppe Cocco, Pastificio Chiavenna, Pastificio Liguori, Pastificio Sgambaro, Pastificio Tamma and Rummo now face tariffs of 9.09%, the New York Post reported.
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Packets of Barilla pasta in a supermarket in Rome, September 27, 2013. (Tony Gentile/Reuters / Reuters)
The United States had previously proposed tariffs of up to 92% on Italian pasta makers, in addition to the 15% tariffs applied to most Italian pasta makers. European Union imports, Reuters reported.
Several companies warned at the time that the proposed tariff increases could effectively exclude them from the U.S. market, which represents nearly $800 million for Italian pasta exporters, according to Reuters and The Wall Street Journal.
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a worker at the preparation plant at Cecco’s Italian Paker plant in Fara San Martino, Italy, on November 29. (Reuters/Remo Casilli/File photo / Reuters)
The Italian Foreign Ministry said the revised calculations reflect American officials recognition of the “constructive desire for cooperation” of companies.
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The final tariffs are expected to be announced on March 12, but they could be extended for up to 60 days, according to Reuters.
The U.S. Department of Commerce did not immediately respond to FOX Business’ request for comment.