On Monday China announced the introduction of anti-dumping duties on imports of sugar, after a lengthy investigation, writes Reuters. A new regulation will affect about one third of the sugar imported annually into the country.

To date, China imported about 3 million tons of sugar a year, of which 1.94 million tonnes were allowed to be imported at a rate of 15%, others taxed at 50%.

Under the new rules, introduced an additional rate for transportation over a three-year period, which would each year decline slightly. Total 50% the fee will increase an additional 45%, making the total fee is equal to 95%. Next year it will drop to 90%, and the year after to 85%.

Experts have already predicted that this measure from China strikes Thailand and Brazil. However, traders hold a different view – the increased fee will lead to increased smuggling across the southern border of China, and some big producers will start to import sugar into the Chinese market through third countries.

According to the Chinese trader, the duty for some time will support local producers, "but if the global raw sugar market to drop below 15 cents, then it again will make profitable entry into China".

We will remind, the world prices for raw sugar on Friday was 17 cents per pound.

Photo: saveur.com