The United States will scrap agreements suspending antidumping and countervailing duties on Mexican sugar and re-impose those trade remedies on June 5 unless the two governments agree on a renegotiated version of the deal, the Commerce Department announced on May 1.
[Jack Caporal] May 1st, 2017 [Inside U.S. Trade]
“While I regret that such measures were needed, it is my hope that Mexico and the United States can reach a fair agreement before June,” Commerce Secretary Wilbur Ross said in a statement.
The Commerce Department issued two letters, one for each type of duty, to the National Chamber of the Sugar and Alcohol Industry (Camara Nacional de Las Industrias Azucarera y Alcoholera), stating that the suspension agreements will be terminated unless updates can be agreed upon before June 5.
The two governments have sought to renegotiate the agreements for at least a year, but U.S. sugar producers have pushed negotiating conditions that the Mexican side has refused to agree to. The new proposal appears to be an attempt to resolve complaints by U.S. sugar refiners that sugar usable for commercial application without refining from Mexico is being shipped under the raw sugar category of the suspension agreements, according to an industry source.
“However, despite everyone’s best efforts and numerous meetings, there remain outstanding issues between the parties,” the AD letter states.