Us Mexico Suspension Agreement Sugar

In his press release, Husch Blackwell, led by Washington partner Jeffrey Neeley, said he had put in place “a legal strategy that called into question the inability of the Department of Commerce to record information about meetings that have ex-shared discussions with other members of the domestic industry and trade officials, including Minister Wilbur Ross. In the end, the CIT agreed and found that Commerce had broken the law with respect to the agreement. As a result, the Tribunal found that the trade decision had been overturned and that the revised agreement with Mexico was non-hazard.¬†As a result, the current sugar trade between the United States and Mexico is again governed by the suspension agreements of December 19, 2014. These agreements set the benchmark prices for refined sugars from Mexico at 26c per litre and 22.25c per litre for raw sugar, compared to 2017, which set benchmark prices at 28 c/lb for refined products and 23c/lb for “other” or raw sugar. The initial suspension agreements also defined that refined sugars had a polarity greater than or equal to 99.5, while the 2017 amendments set the minimum polarity at 99.2, which in fact limited the amount of sugar distributed to U.S. “melters” who shipped directly to food producers and increased the amount of raw sugar imports going to U.S. tube refineries. The 2017 amendments also adapted the refined/gross blend of sugar imports from Mexico to 30%/70%, compared with 57%/47% in the initial suspension agreements. Trade consulted with Mexican sugar producers/exporters and stakeholders and reviewed stakeholder comments on the proposed amendment to the AD agreement. On 15 January 2020, trade and a representative of sugar producers/exporters, who accounted for most of all sugar imports from Mexico, signed a final amendment to the AD agreement, after reviewing the comments of the interested party. Amendment 2020, incorporated into the AD agreement (the amended AD agreement), authorizes the export of Mexican sugar to the United States in accordance with the collective conditions set out in it.

In accordance with Section 734 (c) of the Act, we found exceptional circumstances within the meaning of Section 734 (c) (2) (A) of the amended AD Agreement Act. We also found that the amended AD agreement will completely eliminate the adverse effects of exports of the affected products to the United States and prevent the suppression or under-pricing of domestic sugar prices by imports of these products from Mexico, as requested by Section 734, paragraph 1, of the Act. We also found that the amended AD agreement is in the public interest and can be effectively monitored under Section 734 (d) of the Act. The agreement amended a 2014 agreement between Mexico and the United States, after the U.S. government found that Mexico subsidized sugar exports and that sugar prices had dumped under the U.S. market. The agreement suspended countervailing duties and anti-dumping duties allegedly instituted on Mexican sugar imports into the United States. The Ministry of Commerce (Commerce) and a representative of the undersigned sugar producers/exporters, who account for most of all sugar imports from Mexico, signed an amendment to the agreement suspending the anti-dumping investigation into sugar from Mexico (AD agreement). The amendment to the AD agreement amends the definitions of sugar from Mexico, changes the reference prices for applicable sugar from Mexico, and provides for improved monitoring and enforcement mechanisms. The amendments apply to all sugar contracts from Mexico for the period from October 1, 2017 to September 30, 2018 and all sugar contracts from Mexico (regardless of export period) exported from Mexico on or after October 1, 2017.


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