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

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

3. Where are we, continued
January 8, Imperial Sugar and AmCane Sugar request ITC to review whether suspension agreements completely eliminate serious injury to the domestic sugar industry
March 24, ITC determines (6-0) that the suspension agreements do completely eliminate serious injury
May 4, AD and CVD investigations continued at request of Imperial/AmCane (suspension agreements remain in effect)
May 26, 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

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

5. 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

6. 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 $ 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

7. 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

8. 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

9. 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 months to issue a ruling in AD and CVD appeals