U.S. Department of Commerce Will Resume the Collection of Duties on Mexican Sugar if Negotiations Fail

Transcription

1 U.S. Department of Commerce Will Resume the Collection of Duties on Mexican Sugar if Negotiations Fail WASHINGTON Today, after negotiations reached an impasse, the Department of Commerce formally notified the Government of Mexico its intention to resume the collection of antidumping and countervailing duties on sugar imports on June 5, 2017, unless an agreement is reached. While I regret that such measures were needed, it is my hope that Mexico and the United States can reach a fair agreement before June, said Secretary Ross. If no agreement is reached by June 5, 2017 then the antidumping and countervailing duty orders that are presently suspended will become operative and cash deposits on imports will be required. Background: In 2014, Commerce reached final affirmative determinations in antidumping (AD) and countervailing duty (CVD) investigations regarding sugar imported from Mexico. In addition, the International Trade Commission found that the U.S. industry was being injured by reason of imports of sugar from Mexico. However in 2014, an agreements was signed with the Government of Mexico and Mexican sugar producers that suspended AD and CVD duties on imports of sugar from Mexico. In 2016, The American Sugar Coalition raised concerns with Commerce about the operation of the agreements, and petitioned Commerce to formally review whether the agreements continue to meet the applicable requirements of U.S. law. In December, 2016 Commerce issued preliminary findings that the agreements may not be working. In March of 2016, U.S. Secretary of Commerce Wilbur L. Ross, Jr. and his Mexican Counterpart Secretary of Economy Ildefonso Guajardo Villarreal announced a renewed effort to resolve ongoing issues with Mexican sugar export and anti - bunching limits. Notifying Letters: May 1, 2017 Juan Cortina Gallardo President Camara Nacional de Las Industrias Azucarera y Alcoholera Additional Signatories Batory De Mexico, S. DE R.L. DE C.V. A Administrative Review- Suspension Agreement

2 Public Document IT A/E&C/P&N/OP/BAU :de Agroindustrias San Patricio S.A. de C.V. (San Patricio) Comercializadora Axiv S.A. de C.V. (Comercializadora Axiv) Comercializadora y Procesadora de Productos y Alimentos, S.A. de C.V. ("CPPA") REFERENCE: Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico Dear Mr. Cortina and Additional Signatories: On behalf of the United States Department of Commerce ("Department"), I am writing to you with respect to the above - referenced Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico ("AD Agreement"). The Department appreciates the work of the Mexican producers and exporters and our combined efforts to preserve and maintain a viable AD suspension agreement on sugar from Mexico since December However, despite everyone's best efforts and numerous meetings, there remain outstanding issues between the parties. At this point, because the signatories of the AD Agreement have not reached agreement on modifications to the AD Agreement, the Department is notifying the Mexican producers and exporters of its intent to exercise its option under Section X.B of the AD Agreement to terminate such agreement, unless the parties reach agreement upon resolution of the outstanding issues with the current AD Agreement. It continues to be our sincere hope that a negotiated settlement can be reached. The Department will devote all necessary resources to work with the parties to this end. This letter constitutes written notice that the Department intends to terminate the AD Agreement

3 on June 5, 2017, unless a revised agreement is reached on or before that date. The Department therefore intends to issue an antidumping duty order on Sugar from Mexico on June 5, 2017, unless a revised agreement can be reached on or before that date. If you have any questions on this notification, please contact me at (202) or Carole Showers, Executive Director of the, at (202) Sincerely, Ronald K. Lorentzen Acting Assistant Secretary for Enforcement and Compliance May 1, 2017 Aristeo Lopez Legal Counsel for International Trade Ministry of the Economy of Mexico Government of Mexico Washington, D.C UNITED STATES DEPARTMENT OF COMMERCE International Trade Administration Washington. 0 C C Administrative Review- Suspension Agreement Public Document IT A/E&C/P&N/OP/BAU:DC

4 REFERENCE: Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico Dear Mr. Lopez: On behalf of the United States Department of Commerce ("Department"), I am writing to you with respect to the above - referenced Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico ("CVD Agreement"). The Department appreciates the work of the Government of Mexico and our combined efforts to preserve and maintain a viable CVD suspension agreement on sugar from Mexico since December However, despite everyone's best efforts and numerous meetings, there remain outstanding issues between the parties. At this point, because the signatories of the CVD Agreement have not reached agreement on modifications to the CVD Agreement, the Department is notifying the Government of Mexico of its intent to exercise its option under Section XI.B of the CVD Agreement to tenninate such agreement, unless the parties reach agreement upon resolution of the outstanding issues with the cunent CVD Agreement. It continues to be our sincere hope that a negotiated settlement can be reached. The Department will,devote all necessary resources to work with the parties to this end. This letter constitutes written notice that the Department intends to terminate the CVD Agreement on June 5, 2017, unless a revised agreement is reached on or before that date. The Department therefore intends to issue a countervailing duty order on Sugar from Mexico on June 5, 2017, unless a revised agreement can be reached on or before that date. Jf you have any questions on this notification, please contact me at (202) or Carole Showers, Executive Director of the, at (202)

5 Sincerely, Ronald K. Lorentzen Acting Assistant Secretary for Enforcement and Compliance DATE: May 1, 2017 UNITED STATES DEPARTMENT OF COMMERCE lnt:arnatlonal Trade Administration Washington, D.C A Administrative Review- Suspension Agreement POR: 12/19 /14-11/30 /15 Public Document ITA/E&C/P&N/OP/BAU: dwc MEMORANDUM TO: Carole Showers Executive Director Sally C. Gannon. CfbA. Director for Bila~eements.

6 Sugar from Mexico: Extension of Deadline for Final Results of the Administrative Review of the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico BACKGROUND At the request of interested parties, the Department of Commerce (the Department) initiated an administrative review of the Agreement Suspending the Antidumping Duty Investigation on Sugar from Mexico, covering the period December 19, 2014, through November 30, The Department published its Preliminary Results on December 5, EXTENSION OF TIME LIMIT FOR FINAL RESULTS Section 751 (a)(3)(a) of the Tariff Act of 1930, as amended (the Act), requires the Department to complete the results of an administrative review within 120 days after the date on which the preliminary determination is published. However, if it is not practicable to complete the review within that time period, section 75l(a)(3)(A) of the Act allows the Department to extend that day period to a maximum of 180 days after the date of publication of the preliminary results. 1 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 81 FR 6832, 6839 (February 9, 2016). 2 See Antidumping Duty Suspension Agreement on Sugar From Mexico; Administrative Review, 81 FR (December 5, 2016). On March 10, 2017, we determined that it was not practicable to complete this review by the previous deadline of April 4, 2017, and extended the deadline to May 1, We are recommending fully extending the deadline for this review to no later than June 5, Therefore, we recommend extending the time period for issuing the final results of this administrative review to no later than June 5, 2017.

7 Agree Carole Showers Executive Director Disagree DATE: May 1, 2017 Carole Showers Executive Director FROM: Sally C. Gannon Director for Bila~ements C Administrative Review Suspension Agreement POR: 12/19 /14-12/31 /15 Public Document

8 ITNE&C/P&N/OP/BAU: dwc SUBJECT: Sugar from Mexico: Extension of Deadline for Final Results of the Administrative Review of the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico BACKGROUND At the request of interested parties, the Department of Commerce (the Department) initiated an administrative review of the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, covering the period December 19, 2014, through December 31, The Department published its Preliminary Results on December 5, EXTENSION OF TIME LIMIT FOR FINAL RESULTS Section 751(a)(3)(A) of the Tariff Act of 1930, as amended (the Act), requires the Department to complete the results of an administrative review within 120 days after the date on which the preliminary determination is published. However, if it is not practicable to complete the review within the time period, section 75l(a)(3)(A) of the Act allows the Department to extend that day period to a maximwn of 180 days after the date of publication of the preliminary results. 1 See initiation of Antidumping and Countervailing Duty Administrative Reviews, 81 FR 6832, 6839 (February 9, 2016); Suspension Agreement on Sugar From Mexico; Administrative Review of the Agreement Suspending the Countervailing Duty investigation on Sugar From Mexico, 81 FR 87539, (December 5, 2016) (Preliminary Results) (noting that the original period ofreview was extended to include calendar year 2015). 2 See Preliminary Results.

9 On March 10, 2017, we determined that it was not practicable to complete this review by the previous deadline of April 4, 2017, and extended the deadline to May 1, We are recommending fully extending the deadline for this review to no later than June 5, Therefore, we recommend extending the time period for issuing the final results of this administrative review to no later than June 5, Agree Disagree Carole Showers Executive Director 3 See Memorandum to Carole Showers entitled "Sugar from Mexico: Extension of Deadline for Final Results of the Administrative Review of the Agreement Suspending the Anti - Dumping Investigation on Sugar from Mexico." March 10, The maximum extension permitted is 60 days from the date of the original results, which falls on Saturday, June 3, The Department's practice dictates that where a deadline falls on a weekend or federal holiday, the appropriate deadline is the next business day. See Notice of Clarification: Application of"next Business Day" Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR (May 10, 2005). ###