Today, after negotiations reached an impasse, the Department of Commerce formally notified the Government of Mexico its intention to resume the collection of antidumping and countervailing duties on sugar imports on June 5, 2017, unless an agreement is reached.

“While I regret that such measures were needed, it is my hope that Mexico and the United States can reach a fair agreement before June,” said Secretary Ross.

If no agreement is reached by June 5, 2017, then the antidumping and countervailing duty orders that are presently suspended will become operative and cash deposits on imports will be required.

Background:

In 2014, Commerce reached final affirmative determinations in antidumping (AD) and countervailing duty (CVD) investigations regarding sugar imported from Mexico. In addition, the International Trade Commission found that the U.S. industry was being injured by reason of imports of sugar from Mexico. 

However, in 2014, an agreement was signed with the Government of Mexico and Mexican sugar producers that suspended AD and CVD duties on imports of sugar from Mexico.

In 2016, The American Sugar Coalition raised concerns with Commerce about the operation of the agreements and petitioned Commerce to formally review whether the agreements continue to meet the applicable requirements of U.S. law. In December 2016, Commerce issued preliminary findings that the agreements may not be working. 

In March 2016, U.S. Secretary of Commerce Wilbur L. Ross, Jr. and his Mexican Counterpart Secretary of Economy Ildefonso Guajardo Villarreal announced a renewed effort to resolve ongoing issues with Mexican sugar export and anti-bunching limits.

Notifying Letters: