HS Code:
The category under review includes 4-(4-Chloro-2-methylphenoxy) butyric acid, p-Chlorophenoxyacetic acid, and 2-(2,4-Dichlorophenoxy) propionic acid, which fall under the broader classification of phenoxy herbicides and related chemical compounds. These are primarily used as herbicides in agricultural applications to control broadleaf weeds. They belong to the HS Code 2918.99, which covers carboxylic acids with additional oxygen function and their derivatives. These chemicals are critical in modern agriculture for crop protection, with significant demand in regions with intensive farming. Global trade in these compounds is influenced by agricultural policies, environmental regulations, and the push for sustainable farming practices.
Total Trade Volume
Approximately USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
USD 450 million
37.5% of total trade of total trade
Increasing
USD 300 million
25.0% of total trade of total trade
Stable
USD 150 million
12.5% of total trade of total trade
Increasing
USD 100 million
8.3% of total trade of total trade
Increasing
USD 80 million
6.7% of total trade of total trade
Stable
Average Rate
5.5% ad valorem
Highest Rate
15% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-US trade pacts or within ASEAN)
Rising demand for sustainable herbicides
Increased R&D investments in bio-based alternatives to traditional phenoxy herbicides, potentially reducing market share for chemical-based products.
2021-2023
Stringent environmental regulations
Countries in the EU and North America are imposing stricter controls on the use of chemical herbicides, leading to reduced imports and a shift to organic farming solutions.
2020-2022
Growth in agricultural output in developing nations
Increased demand for cost-effective herbicides like 2,4-D derivatives in countries such as India and Brazil to support higher crop yields.
2019-2023
The European Union has introduced stricter guidelines on the use of 2,4-D based herbicides due to concerns over environmental impact and groundwater contamination.
June 2023
Expected to reduce EU imports of these chemicals by 20% over the next 5 years, pushing manufacturers to explore alternative markets in Asia and Latin America.
Major Chinese chemical manufacturers have ramped up production of phenoxy herbicides to meet growing global demand, especially in developing regions.
March 2023
Likely to increase Chinaโs dominance in the market, potentially leading to price competition and affecting smaller exporters.
The US Environmental Protection Agency (EPA) approved a new low-volatility formulation of 2,4-D to reduce environmental risks, boosting domestic usage.
January 2023
Expected to stabilize US trade volumes while encouraging innovation in safer herbicide technologies.