Importers Demand Future Mexican Sugar Flows as Commerce Nears AD Decision
A suspension agreement to end the U.S.-Mexico sugar dumping dispute must ensure Mexican exporters are still able to supply a steady and stable amount of sugar to the U.S. market, said John Herrmann of Kelly Drye, counsel for the Sweetener Users Association (SUA), on an Oct. 23 conference call organized by the National Foreign Trade Council. The Commerce Department is expected to impose duties in its preliminary antidumping determination set for Oct. 27, said Herrmann. The agency most recently said it would release the determination on Oct. 24 (see 14082014).
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SUA is also demanding the International Trade Commission reach its final injury determination before a suspension agreement goes into force, said Herrmann. Foreign exporters in a Commerce investigation must propose a suspension agreement 15 days after the preliminary AD determination, which in this case will be on or around Nov. 8. If the ITC later finds domestic industry is not injured by imports of sugar from Mexico, Commerce's AD/CV duty investigations would be terminated and any suspension agreement would become moot. That would only happen if the ITC carries out its investigation to the final stage, however, which does not always happen investigations are suspended.
The domestic petitions in the case prescribed AD duties at 45-60 percent, but Commerce's rates are typically under those figures, said Herrmann. The preliminary AD duty determination is expected to enter the Federal Register on Oct. 31, and then importers will have to pay the cash deposits beginning on that date, said Herrmann. The domestic petitions in the case prescribed AD duties at 45-60 percent, but Commerce's rates are typically under those figures, he said.
The conference call also coincided with the release of a white paper (here) authored by SUA economist Tom Earley. The white paper illustrates a sharp rise in domestic sugar prices for consumers, following the launch of the Commerce investigation in March.