U.S. Trade Commission Upholds Sugar Pact With Mexico

(Wall Street Journal) – The U.S. International Trade Commission voted unanimously Thursday to uphold an agreement that suspended duties on sugar imports from Mexico, a decision that Mexico’s Economy Ministry welcomed as positive for Mexican producers.

The USITC determined that December’s suspension agreements between the Department of Commerce and the Mexican government and sugar industry eliminated the injurious effect of imports on the U.S. domestic industry.

The agreements, which put limits on U.S. imports of Mexican sugar and set minimum prices, led to the suspension of the investigation in which duties were slapped on Mexican sugar imports.

The investigation followed allegations by U.S. sugar producers that Mexico was hurting the market with cheap subsidized sugar.

Mexico denies that it dumps sugar in the U.S.

The Economy Ministry said that with Thursday’s decision, Mexican sugar producers gain certainty in their preferential access to the U.S., a major sugar importer, without the possibility of facing compensatory duties.

Mexico expects to export about 1.4 million metric tons of sugar to the U.S. in the 2014-15 season, the ministry added.