No Chance of Negative ITC Injury Finding if Mexico Sugar Deal is Finalized

Proposed suspension agreements to end the antidumping duty investigations on sugar from Mexico would not allow the investigations to proceed to their final stages, according to a lawyer familiar with the case. That means the suspension agreements, which include minimum prices and quantity restrictions on sugar imports (see 1410280027), would take effect sooner rather than later. It also means that, under the tentative agreements’ current form, there would be no chance the International Trade Commission would be allowed to reach its final injury determination and potentially terminate the investigations by finding no injury to U.S. industry.

Shortly before the proposed suspension agreements were announced, the Sweetener Users Association had called for the ITC to make its final injury determination before any agreement is finalized (see 1410230056). The group, which represents importers and is not a party to the investigation, also said any agreement should allow downstream sugar users in the U.S. to continue to import Mexican sugar.

The Sweetener Users Association condemned the proposed suspension agreements in a statement released following the deal’s announcement on Oct. 28. “We are deeply concerned about the implications of the proposed suspension agreements for the U.S. sugar market, American consumers and manufacturers,” said the statement. The agreements will create market uncertainty, and increase prices for consumers and U.S. sweetener users, including food and beverage manufacturers, it said. “While we are reviewing the details of the agreements to evaluate their full impact, at this stage we caution all parties and both governments to consider the ramifications of entering into a managed trade agreement on sugar." Lawyers representing the American Sugar Coalition and the Mexican Sugar Chamber did not respond to requests for comment.

The American Sugar Alliance, which includes the same members of the coalition of domestic companies that requested the AD/CVD investigations on Mexican sugar, praised the deal in a statement following the announcement of the proposed suspension agreement. “U.S. government officials should be commended for their hard work and diligence in reaching an agreement with the Mexican government that could serve as the basis for suspending the pending countervailing duty and antidumping duty cases,” it said. “We believe that U.S. sugar producers and consumers alike will benefit if an agreement is finalized,” said the coalition.