Domestic Industry Asks for AD/CV Duties on Sugar From Mexico
A domestic sugar industry coalition on March 28 filed a request for new antidumping and countervailing duties on sugar from Mexico (A-201-845/C-201-846). The American Sugar Coalition says cheap dumped and subsidized imports of sugar from Mexico have “destroyed the economics” of the U.S. sugar industry, forcing U.S. producers to forfeit their product under the U.S. Department of Agriculture loan program, and resulting in USDA paying hundreds of millions of dollars to remove surplus sugar from the U.S. market.
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Mexico is currently the only country in the world that is allowed to freely export sugar to the United States, says the petition. While sugar from other countries has to enter the U.S. under tariff-rate quota, Mexican sugar enters duty free under NAFTA. According to the domestic coalition, Mexican sugar exports to the U.S. have nearly doubled, from 1.071 million short tons in 2011-12 to 2.124 million short tons in 2012-13.
The sharp rise is partly the result of government subsidization and offloading of excess sugar in the U.S. market at reduced prices, says the petition. It alleges AD rates of 44.88% to 62.34%. “Unless and until the situation changes, that is, unless and until Mexican sugar becomes subject to antidumping and countervailing duty discipline, the viability of the domestic sugar industry will remain at risk,” said the domestic coalition. “Petitioners understand that NAFTA gives Mexico the right to export sugar to the United States on a tariff-free and quota-free basis - but that does not give the Mexican industry the right to export its surplus to the U.S. market at dumped prices, nor does it permit the GOM to subsidize its sugar industry without regard to the impact of those subsidies on U.S. producers,” it said.
Proposed Scope
The petition’s proposed scope of the investigation is as follows:
“The merchandise covered by these petitions is: raw and refined cane and beet sugar, in dry and liquid forms, including colored sugar, flavored sugar and blends with other sweeteners.”
The petition says it covers “raw sugar, refined sugar, blends of sugar with other sweeteners containing at least 65 percent sugar by weight, liquid sugar, and invert syrup produced from sugar cane or sugarbeets.” It identifies the following Harmonized Tariff Schedule subheadings as potentially subject to the proposed investigation: 1701.12.10, 1701.12.50, 1701.13.05, 1701.13.10, 1701.13.20, 1701.13.50, 1701.14.05, 1701.14.10, 1701.14.20, 1701.14.50, 1701.91.05, 1701.91.10, 1701.91.30, 1701.91.42, 1701.91.44, 1701.91.48, 1701.99.05, 1701.99.10, 1701.99.50, 1702.90.05, 1702.90.10, 1702.90.20, 1702.90.35, 1702.90.40, 2106.90.42, 2106.90.44, and 2106.90.46.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on sugar from Mexico. Comments are due by about April 17.
Email ITTNews@warren-news.com for a copy of the petition.