The US Commerce Department said on Thursday that it has set preliminary antidumping duties (AD) on imports of certain potassium phosphate salts from China, a move might escalate trade disputes between the two countries.

The department said it "preliminarily determined that Chinese producers/exporters have sold potassium phosphate salts in the United States at 69.58 to 95.40 percent less than fair value."

As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.

The products covered by this investigation are used in industrial and institutional cleaning products, fertilizers, and food additives.

From 2006 to 2008, imports of certain potassium phosphate salts from China increased 228 percent by volume and were valued at an estimated 16.4 million dollars in 2008, according to the US Commerce Department.

Commerce said that it is currently scheduled to make its final determination in May 2010.

If Commerce makes an affirmative final determination, and the US International Trade Commission makes an affirmative final determination that imports of certain potassium phosphate salts from China materially injures, or threaten material injury to, the domestic industry, Commerce will issue an antidumping duty order.

The new case followed the Commerce Department's preliminary antidumping duties on imported magnesia carbon brick from China on March 4. On March 2, Commerce also slapped preliminary sanctions on imported Chinese potassium phosphate salts and coated paper.

The protectionist moves by the Obama administration will ultimately hurt the US-China trade relations, which are becoming more and more important due to the global financial crisis, economists warned.

(Xinhua News Agency March 12, 2010)