Sugar from Mexico Antidumping and Countervailing Duty Cases Sweetener Symposium Santa Ana Pueblo, New Mexico August 2015

Where are we? March 24, 2014 Petitions filed May 12, 2014 ITC Preliminary Determination of Injury September 2, 2014 DOC Preliminary Determination of Subsidy FEESA 17.01% GAM 2.99% ALL OTHERS 14.87% November 3, 2014 DOC Preliminary Determination of Dumping FEESA 39.54% GAM 47.26% ALL OTHERS 40.76% December 19, 2014 DOC and GOM and Mexican exporters enter into Suspension Agreements

Where are we, continued January 8, 2015 Imperial Sugar and AmCane Sugar request ITC to review whether suspension agreements completely eliminate serious injury to the domestic sugar industry March 24, 2015 ITC determines (6-0) that the suspension agreements do completely eliminate serious injury May 4, 2015 AD and CVD investigations continued at request of Imperial/AmCane (suspension agreements remain in effect) May 26, 2015 Imperial/AmCane appeal ITC March 24 serious injury review decision to the US Court of International Trade; Mexico Sugar Chamber appeals ITC decision to start the serious injury review

Where are we, continued June 15, 2015 DOC Post Preliminary Determination of Additional Subsidy FEESA 9.93% (Total CVD rate 26.94%) GAM 0.80% (Total CVD rate 3.79%) These rates could change when DOC makes its final determination of subsidy (as could the antidumping rates)

What are suspension agreements? Countervailing Duty Suspension Agreement Between Government of Mexico and US Government Limit exports from Mexico to US Needs As determined by USDA WASDE data 13.5 stocks to use ratio Up to 53% refined sugar (99.5 polarity or higher) Limit for January-September 2015: 1,281,552 STRV Limit for October 2015-September 2016: 1,083,845 STRV + ? Term: 5 years Reviewable: Every year Enforced by DOC, US Customs and Government of Mexico CVD Investigation is suspended while agreement is in effect

What are suspension agreements? Antidumping Suspension Agreement Between Mexican Exporters and US Government FOB mill price US $0.26 per pound for refined sugar FOB mill price US $0.2225 per pound for other sugar Refined sugar = sugar with polarity 99.5 or higher Reviewable: Every year Enforced by DOC, US Customs and Government of Mexico AD Investigation is suspended while agreement is in effect

Then what happened? Continuation of AD and CVD Investigations DOC has continued the AD and CVD investigations at the request of Imperial/AmCane (suspension agreements remain in effect during the investigation) DOC Final Subsidy and Antidumping Determinations by September 16, 2015 ITC Hearing September 16, 2015 ITC Vote October 20, 2015 ITC Final Determination November 2, 2015

Possible Results There are two possible results of the continued AD and CVD investigations: Continuation of the suspension agreements if ITC finds injury Unrestricted trade in sugar with Mexico if ITC finds no injury Continuation of the agreements is the most likely result but free trade could happen

Possible Results, continued There are two possible results of the Imperial/AmCane appeal to the Courts of the ITC decision that the suspension agreements completely eliminate serious injury: The ITC decision could be confirmed The serious injury issue could be sent back to the ITC for further consideration with instructions from the Court If it is not dismissed, there are two possible results of the Mexico Sugar Chamber appeal of the ITC decision to conduct the serious injury review: The ITC decision could be reversed notwithstanding the fact that the review has already been completed The CIT typically takes 10-12 months to issue a ruling in AD and CVD appeals