The U.S. Commerce Department says it will investigate charges that Mexico is dumping sugar cane and sugar beets below cost on the U.S. market. The American Sugar Alliance filed a complaint with the Commerce Department and the U.S. International Trade Commission in March charging “The Mexican sugar industry, 20 percent of which is owned and operated by the Mexican government, has rapidly increased exports to the United States in recent years, rising from 9 percent of the U.S. market in FY2012 to nearly 18 percent in FY2013. And, according to recently updated U.S. Department of Agriculture (USDA) data, Mexico is accelerating its rate of exportation in FY2014.”
The ASA contends the increases are “being fueled by substantial subsidies and by dumping margins of 45 percent or more.” The organization contends the Mexican action will cost U.S. producers nearly $1 billion this year.
The U.S. International Trade Commission is responsible for determining whether or not domestic producers are injured by dumped and subsidized imports. It is expected to make a preliminary determination in May.
Mexico’s Agriculture Ministry disputes the charges saying all of their exports are legal.