International Trade Law News

The U.S. and Mexico have reached an agreement-in-principle that will resolve the long-running dispute regarding imports of Mexican cement into the U.S. The following is a summary of the terms of the agreement that will expire in 2009:

• Limit of 3 million metric tons of Mexican cement to be distributed regionally throughout the southern tier of the United States at an antidumping duty of $3 per metric ton;
• A disaster provision of an additional 200,000 metric tons to be instituted if the President determines that a natural disaster warrants an increase in the import of Mexican cement;
• Elements for mutual trade liberalization including general U.S. access to the Mexican market;
• Resolution of all outstanding litigation before the U.S. and international courts;
• Provisions that address the revocation of the antidumping duty order at the conclusion of the agreement in 2009.

This dispute dates back to 1989, when the Southern Tier Cement Committee filed an antidumping petition on cement from Mexico. The U.S. Department of Commerce imposed an antidumping order on imports of cement from Mexico in August 1990 and since that time the U.S. has imposed antidumping duties ranging from 27.40% to 109.43% on imports of Mexican cement. The Commerce Department recently announced the final results of the 14th administrative review on gray portland cement and clinker from Mexico and found dumping margins of 42.26% (per-unit rate of $26.28 per metric ton) on CEMEX S.A. de C.V. and its affiliate, GCC Cemento, S.A. de C.V.

The terms of the agreement should be finalized in the near future.

Labels: Antidumping