Landrieu: U.S. and Mexican Officials Reach Preliminary Agreement on Illegal Mexican Sugar Imports

Press Release

U.S. Senator Mary L. Landrieu, D-La., Chair of the Homeland Security Appropriations Subcommittee, today announced a preliminary agreement between the United States and Mexican governments to suspend the ongoing antidumping and countervailing duty investigations of illegal sugar exports from Mexico.

The deal follows yesterday's preliminary finding by the United States Department of Commerce (Commerce) that the Mexican government dumped sugar on the U.S. market at a price lower than legally allowed, effectively hurting Louisiana's sugar industry. In August, Commerce also announced its affirmative preliminary determination in the investigation of countervailing duties on imported sugar from Mexico. Countervailing duties (CVDs) are trade taxes imposed to combat the negative effect of subsidies on certain industries.

If a final agreement is not reached, Commerce and the International Trade Commission (ITC) will then make a final determination that these illegal subsidies did occur. If the ruling is in favor of U.S. sugar producers, Commerce will order U.S. Customs and Border Protection (CBP) to collect Countervailing Duties (CVD) from Mexican sugar producers to cover the impact on American sugar producers. Commerce would make a final determination in early 2015.

"I am encouraged that the U.S. and Mexican governments have reached a draft agreement to help prevent these illegal sugar imports and halt the losses our Louisiana sugar producers have suffered. Our sugar producers work too hard and are too important to our economy to let illegal dumping go unpunished," Sen. Landrieu said. "Louisiana sugar producers can compete with anyone in the world, as long as they have a fair and level playing field. But, that cannot happen if Mexican producers are allowed to dump subsidized sugar into the U.S. market. I will continue to monitor progress in finalizing the agreement to ensure the final accord treats our sugar producers fairly. I will also hold the Administration accountable for enforcing the final terms, including the investigative and enforcement provisions of the pact."

In March, U.S. Sugar producers filed anti-dumping and countervailing duty petitions against Mexican sugar producers with the United Stated International Trade Commission (ITC) and Commerce. Sen. Landrieu immediately expressed her support for these petitions.

Sen. Landrieu also sent a letter to ITC urging the commission to investigate sugar dumping by Mexico into the U.S., which cost the American Sugar Industry an estimated $1 billion in lost income during last year's growing season. Read her letter. The ITC subsequently agreed to investigate.

In April, Commerce agreed to investigate the Mexican sugar industry for the practice of dumping low-cost sugar on the American markets.

At a hearing in July, Sen. Landrieu heard testimony from CBP and U.S. Immigration and Customs Enforcement (ICE), as well as business leaders to get their thoughts on what additional steps can be taken to prevent foreign businesses from illegally dumping their products onto U.S. markets.

Throughout her career Sen. Landrieu has been an ardent supporter of the sugar industry and will continue to fight for strong policies to help this sector thrive for years to come.

During the 2013 Farm Bill debate, Sen. Landrieu led the successful effort against the Toomey-Shaheen amendment to the Farm Bill that would have devastated Louisiana's sugarcane growers and the domestic sugar industry.

Under the Tariff Act of 1930, U.S. industries may petition the government for relief from imports that are sold in the United States at less than fair value ("dumped") or that benefit from subsidies provided through foreign government programs.

The ITC is responsible for determining whether a particular U.S. industry is materially injured or threatened with material injury from the imports under investigation. If both the ITC and Commerce determine that is the case, then Commerce will issue an antidumping duty order to offset the dumping.

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