WASHINGTON – Sen. Chuck Grassley today welcomed the passage of a provision in the Pension Protection Act of 2006 that will benefit U.S. honey producers, including those in Iowa, by changing the "new shipper provision" of the U.S. trade laws.

"I made it a point to see that this new shipper provision, which is so important to honey producers including Iowa’s honey producers, passed this year," said Grassley, who is chairman of the Committee on Finance, with jurisdiction over international trade.

The passage of this legislation will directly benefit honey producers, Grassley said. Honey producers in Iowa and other states have been injured by the unfair trade practices of honey producers in other countries, including Chinese producers, who have dumped honey in the U.S. market. To evade the U.S. antidumping order on honey, some Chinese honey exporters have abused the new shipper provision. This provision provides that shippers who were not selling to the United States at the time of an original antidumping investigation may post a bond in lieu of a cash deposit while they are investigated to determine if they, too, are dumping. Unfortunately, importers from these new shippers sometimes refuse to pay their bonds, thus evading U.S. trade remedy laws.

The provision included in the pension bill suspends for a set period the new shipper bonding privilege, which some Chinese exporters of honey and other products have used to circumvent U.S. antidumping laws. This provision also requires government agencies to study the problem further and advise Congress on steps taken to rectify the problem during the period of suspension.

"Iowa honey producers have made it clear to me that the abuse of the new shipper law by Chinese exporters has caused them real harm. I’m pleased that we’re closing this loophole," Grassley said. "This legislation will help restore price stability in the U.S. honey market, which has been devastated by abuse of the new shipper provision."

The Senate gave final legislative approval to the new shipper change last night as part of the Pension Protection Act of 2006, which now goes to the President for his expected signature.