Import undertakings from Monsanto and Nufarm

Monsanto and Nufarm have given Australia's consumer watchdog court-enforceable undertakings that they will not try to stop agricultural glyphosate herbicides being imported from China.

The Australian Competition and Consumer Commission (ACCC) said the undertakings prevented the companies from making an application for a review of the Customs Minister's decision to not impose a dumping duty on glyphosate imported from the People's Republic.

"The ACCC found that imported glyphosate has played a key role in providing effective price competition for glyphosate supplied to farmers in Australia," Chairman Prof Alan Fels said.

"This outcome ensures that import competition will continue to benefit rural and regional communities nationally.

"The ACCC also went to great lengths to ensure that farmers around the country are able to readily source competitively priced glyphosate products from their local distributor or rural merchandiser."

He said the undertaking by Monsanto, and its proposed exclusive glyphosate distributor Nufarm, ensured there were no restrictions on distributors also stocking competing glyphosate products.

Glyphosate is the world's top-selling herbicide, mostly used in Australia and New Zealand to control weeds in broad-acre farming.

In February, Customs Minister Senator Chris Ellison decided against imposing a dumping duty on glyphosate from China following an application by Monsanto, with Nufarm listed as an interested party.

Fels said Monsanto's failed anti-dumping application had already shown a negative effect on import competition, with any review of the ministerial decision likely to cause further disruption, particularly given the length of the review process.

He said that for the next three years Nufarm and Monsanto must obtain an independent opinion on the possible success of any proposed glyphosate anti-dumping application, with the adviser forced to certify any such application was neither frivolous nor vexatious.

"The undertakings maintain a healthy level of competition in the market for glyphosate," Fels said.