Sugar From Mexico Suspension Agreement

These “suspension agreements” – signed in December 2014 and amended in June 2017 – have created an unnecessarily high under-price for imports of raw and refined sugar from Mexico, as well as quantitative restrictions on sugar imports. In principle, the changes have provided some of the raw sugar for U.S. cane refineries, but less sugar at higher prices for companies that process and sell liquid sugar. The Ministry of Commerce provisionally finds that the Mexican Government (GOM) and the selected respondents, Ingenio Adolfo Lopez Mateos S.A. de C.V. and its related companies (Grupo PIASA) and Ingenio Pánuco S.A.P.I. de C.V. (Pánuco), are complying with the Agreement to Suspend the Countervailing Investigation on Mexican Sugar (CVD Agreement) as amended on 30 June. 2017 (in summary, amended CVD Agreement) for the period from 1 January 2018 to 31 December 2018, the date on which that amended CVD Agreement was in force. In addition, Commerce provisionally finds that the amended CVD Agreement, which was in force during the Revision Period (POR), fulfilled its legal requirements in accordance with Sections 704(c) and (d) of the Tariffs Act 1930, as amended (the Act). Interim results are presented in the “Methodology and Preliminary Results” section (see below).

We intend to publish the final results of the audit within 120 days of the publication of these preliminary results in the federal registry. 1. See Mexican sugar: initiation of an anti-dumping investigation, 79 FR 22795 (24 April 2014). As a result, the current trade in sugar between the United States and Mexico is again governed by the suspension agreements of 19 December 2014. These agreements set partial reference prices at 26 c/lb for refined sugar from Mexico and 22.25 c/lb for raw sugar compared to the 2017 changes, which set reference prices at 28 c/lb for refined sugar and 23 c/lb for `other` or raw sugar. The original suspension agreements also defined refined sugar as a polarity of 99.5 or higher, while the 2017 amendments set the minimum polarity at 99.2, which actually limited the amount of sugar that went to U.S. “sizing” that supplied directly to food producers and increased the amount of raw sugar imports to U.S. cane refineries. The changes made in 2017 also adapted Mexico`s refined/raw sugar blend to 30%/70%, compared to 57%/47% in the original suspension agreements. The action brought by the Court of International Trade is based on an action brought by CSC Sugar L.. C., which argues that the D.O.C.

has not complied with its obligation to submit a comprehensive administrative protocol containing ex parte communications between trade and interested parties. Commerce then provided additional, but not complete, information on the meetings and communications in question, but the court found that the additional material was not sufficient to prove that the omissions were harmless. NEW YORK – On Oct. 18, the U.S. Court of International Trade in New York overturned 2017 amendments to the 2014 agreements that suspended sweeping anti-dumping and countervailing duties on U.S. sugar imports from Mexico. In 2014, U.S. sugar processors filed anti-dumping and countervailing complaints against Mexico.


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