U.S. finds ongoing dumping of Mexican sugar imports

Commerce found dumping and countervailable subsidies with Mexican sugar imports, but its hands remain tied by existing sugar trade agreements between U.S. and Mexico.    The Commerce Department on Thursday determined that imports of sugar from Mexico have been sold in the United States at less than fair market value and the commodity’s producers continue to receive export-inducing subsidies from the Mexican government.
   Specifically, Commerce found that imports of sugar from Mexico have dumping margins ranging from 40.48 percent to 42.14 percent, while this commodity has received countervailable subsidies ranging from 5.78 percent to 43.49 percent.
   Commerce calculated the final dumping rate of 40.48 percent for Fondo de Empresas Expropiadas del Sector Azucarero (FEESA) and 42.14 percent for Ingenio Tala S.A. de C.V. and affiliated companies of Grupo Azucarero Mexico S.A. de C.V. (GAM Group). All other Mexican sugar producers and exporters received a final dumping margin of 40.74 percent from Commerce.
   From its countervailing duty investigations, Commerce calculated a final subsidy rate of 43.93 percent for FEESA and 5.78 percent for Ingenio Tala and GAM Group. All other Mexican sugar producers and exporters have been assigned a final subsidy rate of 38.11 percent by Commerce.
   On Dec. 14, 2014, Commerce signed agreements to suspend its antidumping and countervailing duty investigations related to Mexican sugar imports. The agreements have since allowed Mexican sugar exporters to ship their product into the United States without regard to antidumping or countervailing duties, but still subject them to export limits and minimum prices. The antidumping agreement, for example, requires all imports of refined sugar from Mexico to be sold in the U.S. market at or above 26 cents per pound and imports of other sugar from Mexico to be sold at or above 22.25 cents per pound.
   While these agreements stand, two U.S sugar refiners on May 4, 2015 asked Commerce to resume both its antidumping and countervailing duty investigations. The petitioners include the American Sugar Coalition and its members, the American Sugar Cane League, American Sugarbeet Growers Association, American Sugar Refining, Florida Sugar Cane League, Hawaiian Commercial & Sugar Co., Rio Grande Valley Sugar Growers, Sugar Cane Growers Cooperative of Florida, and U.S. Beet Sugar Association.
   It’s estimated that in 2014 Mexico exported $725.2 million of sugar to the United States.
   The U.S. International Trade Commission is scheduled to make its final determination into the Mexico sugar antidumping and countervailing duty investigation by Nov. 2. If the ITC makes final negative determinations, the suspension agreements from 2014 and antidumping and countervailing duty investigations will end. If the commission, however, makes affirmative final determinations, the agreements will remain in effect. 
   “Both the agreements and final determinations are subject to judicial challenge by interested parties,” Commerce said. “As long as the agreements remain in effect, no AD or CVD orders will be issued and no cash deposits of AD or CVD duties will be required.”