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Dairy Facts 2016
 
 

Commerce Says Mexican Sugar Subsidies Affected U.S. Market

Sep 23, 2015

The Department of Commerce announced last week its final determination on the antidumping duty and countervailing duty investigations regarding Mexican sugar exports to the United States. Commerce said sugar from Mexico has been sold in the United States at dumping margins ranging from 40.48 percent to 42.14 percent. The department also determined that sugar imports from Mexico received subsidies from the Mexican government ranging from 5.78 percent to 43.93 percent.

With these findings, the suspension agreements signed last December by the United States and Mexico will remain in effect until the International Trade Commission makes its final injury determinations no later than early November. The agreements limit the amount of sugar that Mexican firms can export to the United States and require that sale prices reach certain minimums. A fact sheet issued by Commerce lists the key terms of both agreements.

If the ITC rules that the U.S. sugar industry was harmed by Mexico’s actions, the agreements will remain in effect. If not, the suspension agreements and underlying investigations will end.

IDFA and the Sweetener Users Association continue to oppose the suspension, or managed trade, agreements because they restrict the flow of sugar into the United States and are in contrast to the open markets provided for in the North American Free Trade Agreement.

For more information, contact Clay Hough, IDFA senior group vice president, at chough@idfa.org.

 
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