HS Code:
1-Ethoxy-1-oxo-2-propanyl 5-[2-chloro-4-(trifluoromethyl)phenoxy]-2-nitrobenzoate, commonly known as Lactofen (CAS No. 77501-63-4), is a selective herbicide used primarily in agriculture to control broadleaf weeds in crops such as soybeans, peanuts, and other legumes. Classified under HS Code 2918.99.20, this chemical belongs to the category of carboxylic acids with additional oxygen function and their derivatives. Lactofen works by inhibiting protoporphyrinogen oxidase, an enzyme essential for chlorophyll synthesis in plants, leading to weed death. Due to its specific application and chemical nature, trade in Lactofen is often subject to strict regulatory oversight concerning environmental and health safety.
Total Trade Volume
Approximately $50 million USD
Data from 2022
Source
Data derived from UN Comtrade and national customs statistics
$20 million USD
40% of total trade of total trade
Increasing
$15 million USD
30% of total trade of total trade
Stable
$8 million USD
16% of total trade of total trade
Increasing
$5 million USD
10% of total trade of total trade
Stable
$2 million USD
4% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements or for specific agricultural inputs)
Rising demand in South America
Increased soybean cultivation in Brazil and Argentina drives Lactofen demand, boosting trade volumes by 15% annually in the region.
2021-2022
Stringent regulations in Europe
EU restrictions on certain herbicides, including Lactofen, have led to a 20% decline in imports to European markets.
2020-2022
Shift towards sustainable alternatives
Growing interest in bio-herbicides and organic farming practices is reducing long-term demand for chemical herbicides like Lactofen in developed markets.
2019-2022
The US Environmental Protection Agency (EPA) updated usage guidelines for Lactofen, mandating lower application rates to reduce environmental runoff risks.
March 2023
This could lead to a slight reduction in domestic demand but may increase export opportunities to countries with less stringent regulations.
Major Chinese agrochemical manufacturers announced plans to increase Lactofen production by 25% to meet growing global demand, particularly in South America.
July 2022
This expansion may lower global prices due to increased supply, benefiting importing countries but pressuring smaller producers.
Brazil reduced import tariffs on agricultural chemicals, including Lactofen, from 8% to 4% to support its expanding agricultural sector.
January 2023
This policy is expected to increase Lactofen imports by 10-15% in 2023, strengthening trade ties with major exporters like the US and China.