U.S. Sugar Industry Files Petitions Against Mexico
American sugar producers have filed antidumping and countervailing duty petitions with the U.S. International Trade Commission and U.S. Department of Commerce alleging the Mexican sugar industry has shipped sugar to the U.S. at dumping margins of 45-percent or more while receiving substantial subsidies from Mexican federal and state governments. The filings say these actions will cost U.S. sugar producers nearly 1-billion dollars in net income for the 2013-2014 crop year. The North American Free Trade Agreement allows Mexico to export sugar to the U.S. on a tariff-free and quota-free basis - but doesn't give the Mexican industry the right to export its surplus to the U.S. market at dumped prices - according to the petitions. Since late 2011- U.S. prices have been cut in half and are trading currently at the same lows of the 1980s.
American Sugar Alliance Spokesperson Phillip Hayes says Ag Secretary Tom Vilsack and his team at USDA should be commended for their extraordinary actions on behalf of America's sugar farmers. Unfortunately - he says the unrelenting flood of dumped and subsidized sugar from Mexico has overwhelmed the U.S. market and USDA's efforts - leaving the U.S. sugar industry with no alternative but to file these petitions. This is now a legal dispute - according to Hayes. He says it's hard for U.S. farmers to succeed when a subsidized industry that is largely government-controlled is dumping its product.
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